One of the board members was there and is looking to retire, We hit it off and he opened up his 30+ property portfolio to me to choose from.

You will want to insure a number of things as an MTR landlord: your interest in the building itself (owner's policy), your contents (owner's policy), your interests if a renter or guest is hurt on-site (landlord policy), and possibly flood, wind, lost-income policies.

Based upon my research findings I might also start thinking hard about that heater.So, the seller can come after me for the loss of income as a damage since we both agreed that the tenants would vacate at the time of closing even though there is no closing now since my financing fell through. 

Has this property been working for a while with a track record of income performance?

I moved to Reno Tahoe, NV where you can be 3 hours from the beach and there are low property taxes, no state income tax and limited new construction. 

Assume my marginal income tax bracket is very high, and mortgage rate is 5.25%.

Depending on the situation, it could still be worth it for SFHs especially if you have capital gains or other income you need to offset this year.  

Income?

Big banks and credit unions will look at a full DTI(personal income) while others will just look at the cashflow of the property.

This a great option for high income earners who simply do not have the time for real estate.