Also I understand the funds aren't available for the improvements so that is another obstacle that has me leaning towards price reductions to move on as soon as possible.The exit of lower tier SFH's is something very few investors care to consider when making their investments but deserves far more consideration. 

Be very careful who you take advice from online, you should get involved with a local attorney and a local realtor.

As long as no “healthcare” services are provided (like medication or personal care), it’s not regulated by the Department of Health.

I would get an exterminator to take care of it since its a rental and that way they know you are trying to resolve it.

However, you have to be extremely careful financing 100% of the transaction as you still need reserves, closing costs, etc. and make sure it cash flows.You didn't mention if this would be a rental or owner occupied. 

Care to share the details?

Without too much detail I had to quit my W2 job 2 years ago to care for my disabled son and my wife is still working.

Just focus on running the numbers carefully to ensure the property cash flows or at least covers expenses, and don’t hesitate to lean on resources here for advice.If you’re financing, look into FHA loans, as they’re great for first-time buyers purchasing up to 4-unit properties with low down payments.

.- It costs me me less to turn over my 1500 SF units that rent for $3k/m then it does the same size section 8 unit because the property is cared for better and experiences less  wear and tear while fixed costs like cleaning and painting are easier to absorb. 

The 15-20 year run people had is gone, so be VERY careful with listening to some of these "real estate gurus." 7.