will the rate spike higher or will it freeze on the level achieved?)

in your area the 100 year old craftsman houses were built by true carpenters .. there is simply no comparing the two.. not even close.. one thing that does help with proeprty here is you can just put stones in the yard so no yard work.. you dont have thaw freeze  no snow.but you do have blazing sun and heat .. but properties are once done little easier to maintain than in Milwaukee

This would violate the automatic stay which freezes the debtor’s assets.

I wouldn't think that's even code in your region due to freezing.

Also, you run the risk of your pipes freezing. 

Alternatively, you can insulate the walls from the inside, but the "how" depends on the type of foundation {too much, or the wrong kind, of insulation on the inside of rubble, brick or older block foundations can lead to freeze/thaw damage in the foundation walls themselves}.If your basement is unconditioned, you can insulate the underside of the first floor (basement ceiling).  

I write in my leases that the tenant must keep the heat on at all times and keep the temp above 50 degrees even when they leave town, for fear of the pipes freezing in winter.

Insurance of the two rental properties you'd plan on buying- Utilities and holding costs of the properties if not rented (like around here landlords have to pay water and trash and we have to keep heat and stuff on in winter to prevent pipes freezing and we have to keep AC on to prevent floors warping and such during summer)Those would equal the amount you need to be able to afford.

The big issue freezing me up on this deal is the roof.

I have since refinanced to drop mortgage insurance and obtained a HELOC to possibly pursue out of state investing and other local long term holds.I have helped clients purchase 2-4 unit properties in the LA/Southbay Area using FHA loans, but with rates and rents (especially since LA county has a rent freeze) it has become increasingly difficult to meet the self sufficiency standard for FHA 3-4 units, while there is no self sufficiency requirement for duplexes.