That should really be the deciding factor...is it necessary and a large enough project to include the permit process?

Once you have decided on a lender and get pre-approved let us know, so we can celebrate that first step and you can start the 2nd step.

In addition, the gas bills have shut off notices and are not being paid. (3 units are occupied and utilities are all paid by owner).

Trying to decide the best move for myself.

I'm currently renting and when  decided I wanted to focus on real estate investing, I decided not to buy in Tampa because of the low MF inventory and in home house hacking is not for me.

Despite the house being operated for years by the prior owner as a STR. 

This isn't totally necessary, but meeting property owners if you need to is a great way to win a deal

Simply put, many of these distressed properties were put under duress by the former owners financially, not necessarily the location.

Nate @Nate Marroquin   You can use the income from your tax returns on the current rental adding back your paper loss (depreciation) and add back the mortgage interest, property taxes, home owners insurance deductions on your tax returns. 

You may have to switch to owner financing or BRRRR if that is available or some other strategy when the time comes.