There were issues with termites, the electric was really not up to code, the HVAC was complete trash, there was mold, and the inspector had doubts about the health of the roof because he couldn't get into the attic to inspect it because it had been sealed off apparently for who knows what reason.

She had a former tenant that did some damage but most of what I see is wood rot, possible roof issues, and other damage from not being able to care for the home.I have begun to approach her to discuss the cost of upkeep that ultimately is eating away at her living costs.Is there anyone investing in this area whether they are renting or fixing and selling?

You need to determine which direction the roof rafter run in.

Thankfully roof was in decent shape, just needed touch up and silver re-coating. 

The house needs some roofing repairs and will need to be replaced within the next several years.  

Have the roof, water lines, underground sewer lines, electrical and heating and AC units checked.

Flat roof, ~2000 SF. 

The house has updated plumbing, electric, roof, windows, and all that but does anyone see an issue with a buy and hold strategy on older homes? 

Liability, on the other hand, is the concern of the occupant in a warehouse setting, and often contains provisions to limit the Owner's liability almost down to nothing, notwithstanding a roof collapse.   

The house needs repairs to roof, but otherwise has generally been well cared for.