Focus your energy on moving forward. if you need help with people to get the space ready again to rent let us know.

With many seasoned real estate investors locked into low first mortgage rates and large equity positions, many borrowers and investors have been exploring tapping second position loans like home equity lines of credit...

But I generally ignore it because I don't want to waste energy on it. 

It has to be move in ready, but there are exceptions for minor updates like energy efficiency updates.

Do you have the money to have a new heater put in it of some sorts, electric baseboard, natural gas, propane- as well as a new water heater.

As you know labor is the biggest expense and sometimes the owner can float out a lot of the expense on time for the products.A good example of this is a 4 plex that needs complete rehab minus major electrical or plumbing and the bid from the contractor may be $44,000 in labor ( $11,000 per unit )   The contractor may suggest I will take half of the first two years of rent or the equal of same. 

Who does he have to do framing, electrical, plumbing, HVAC, drywall, paint, tile, cabinets and counters, flooring, roof?  

Also look into if you're going to have to bring the whole house up to code if you do this, I mean electricity and insulation, and everything else that they require in brand new homes.Good Luck!

The water heater is not tankless, but it is out of sight and it is electric. 

(Walls, electric outlets, etc.)