The good applicant eventually gets tired of carrying the water for the other, leaves, and you are stuck with a bad tenant. 

I normally recommend using a Property Manager who works with the program regularly to help navigate the waters. 

Each unit has its own electric panel, gas meter, furnace, water meter.

I'd also look to see if water is getting in or if it was just a problem with humidity.

How is the roof, the mechanicals, water issues?

Our waste water goes to Mexico, maybe that’s what they meant?

So here is the first thing that doesn't make sense:How can anyone try to convince you that the foreclosure list, absentee owners list, job loss list, water shut-off list, tax lien list, and probate list are "good lists" when 999 people out of 1000 on your list are not motivated to sell?

. - 5% of agents "walk-on-water".

We needed an upgraded 200amp electrical panel ($5-8k), extended water and sewer for the garage ($5k), built out interior ($7k?)

No question RE is a long game and those who try BRRRRR (I add the last R because there should be one called "Reserves") with $200 cash flow in low cost areas are generally going to be blown out of the water in short order.