The home has all new carpet, tile, paint, ceiling fans and newer appliances in very good condition.  

Is the ceiling height high enough to compete with other buildings that size?

and patch on the ceiling (HVAC Re-route)- Master Bathroom( plumbing - shower stall not properly installed and leak going down to crawl space, cabinet not secured to the wall, GFCI not grounded, faucet aerator leaking)- Kitchen (damaged vinyl, exhaust not working, very dated kitchen but I think I can salvaged the cabinets and just replace the tile countertops)- Ceiling fans are not operable and missing HVAC registers.- Garage (moisture stains, wall damaged, laundry hose bib leaking), partially converted to a room.

Not sure about the trim, but this looks like a basement - looks like ductwork on the ceiling.

Considering the neighborhood and home values, you don't want to invest too much in a house that has such a low value ceiling ($55k-$60k).

I am more risk adverse so I would not count on long term appreciation with a negative cash flow property especially in DC/NOVA...there is always a ceiling on how high the appreciation can go when you are already starting out with average home costs for a basic house that needs heavy cosmetic rehab funding on top of the over $350K - $450K house in an Ok area of DC/NOVA.I submitted a Freedom of Information Act (FOIA) request at the County Code Enforcement office and got a list of blighted (Vacant) and other code violation properties.  

.*** Handy and can DIY small flip projects, demo, flooring, kitchen/bath remodel, paint, walls, ceiling etc.Hopefully can get some tips from all the experienced investors here.

Furthermore,  the location of rooming house are usually tightly regulated.On top of that, conventional lenders tend to turn-away from rooming house, particularly in the environs of a university.Where you have kitchens in both the upper and lower unit and have fire-separated the ceiling of the lower unit have you formally separated them into a duplex (as a way to avoid an occupancy by-law)?

Last thing is to raise the ceiling in the living room.  

Here is what we put in our move out letter, which may be helpful to build on:Specifically, here's a list of items you should thoroughly clean before vacating:[ ] Floors[ ] sweep/mop laminate floors[ ] vacuum carpets and rugs (shampoo if necessary)[ ] mop kitchen and bathroom floors[ ] Walls, baseboards, ceilings, and built-in shelves[ ] Kitchen cabinets, countertops and sink, stove and oven--inside and out [ ] Refrigerator--clean inside and out, empty it of food[ ] Bathtubs, showers, toilets, and plumbing fixtures[ ] Doors, windows, and window coveringsPlease don't leave anything behind--that includes bags of garbage, clothes, food, newspapers, furniture, appliances, dishes, plants, cleaning supplies, or other items that belong to you.For move in, put all info in the rental agreement.