With fully paid-off properties and significant equity, your options are wide open.I had a friend in Connecticut who ended up investing in Phoenix and he was in a situation much like yours - an inherited property and equity to work with.

What @Nathan Gesner said AND:You're in a great market!

Once the property is in a rentable condition you can explore a strategy to rent it STR, MTR, or long term.

The interest on the rental is an offset to rental income, and is by definition deducted from your taxes.A 4% interest rate on a primary is like a 4.88% after rate for a taxpayer in the 22% federal tax bracket, or higher if in a state with state income taxes. 

It's a nice place but in a small town it can be tough to find a good property manager.

The only caveat is that you must be in a "low to moderate" income tract neighborhood.

Adding the current mortgage and utilities would be roughly $1,350 resulting in a profit of $650/mo.

Absent them, risk is controllable over time.I self manage a SFH in the Bay Area in a very pro-tenant city (some cities are a little less pro-tenant than others).

Challenge: It's in a neighborhood (no HOA), and renting the entire property (sleeps 25 in total) caused problems in the neighborhood, due to noise and parties – so we only rent the separate cabins now.

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?