Even if you buy too high, it should work out in the long run. 

Made offers on two others that didn't work out.

It seems to me like the only to really make a rental work out there is to really fix it up a lot (like you did there, looks gorgeous btw).Anyways, congrats on getting something to pay for itself in that market.

It very well may work out, but it’s about quantifying risk.  

They have a great deal of latitude on what they insist you pay, and what you actually work out in payment.Providing, that they are not a corrupt department, and most are Not (Some are quite political, with very "Selective Enforcement") Code officers and department would appreciate have a Foreign Landlord, who is in contact, works towards substantial compliance, and who they know they can trust to resolve an issue.That usually takes time and money.You need to explain , to them, that you "had a Terrible Property Manager, and have since changed and expect it Not to occur again."

I had the best paying job I’d ever had as a Digital Content Director at a small TV Network and they required I relocate from Brooklyn to work out of their Glendale offices. 

Maybe you can work out a deal where you don't charge him with breaking and entering and he lets the few items go.

This house did not work out as Ypsi would not give us a CofO on this. 

Things like this rarely ever work out.   

I'd act as the general contractor and work out some final details.