Quote from @Ben Svoboda: What did you end up doing?

It usually doesn't cover for full replacement of your property.

Next time if you’re not going to use an inspector then do a basic inspection yourself.

Please run the numbers yourself before deciding to invest.

The distance and detachment is too much to make it worth it at this point in your journey, not knowing much about what you want to do.

I can NOT do this on my own.

My biggest question now is: What do I do once (if) I settle/close on this house?

How you do it all, it's all changed. 

Do you have enough equity to do a cash out refi and use that cash to put a down payment on another property?

The only time I'd say it's an okay idea is if either: The area you're investing in is expecting so much appreciation that you will easily profit off that (watch out for mortgage interest though...the appreciation needs to be higher than what you pay in that and expenses to make it profitable)You have some specific reason for wanting to do it- family ties, future home, major long-term hold, etc.Maybe I'm forgetting another one, but those two are all I have for now...