If so and the test comes back hot, the state will then be involved... regulatory issues galore.

I don't know what your house is like, but if you can get a lodger to rent out a room, or if you can add a separate space by inexpensively finishing a basement or attic (microwave, hot plate, mini-fridge, bathroom, + bedroom or studio), you can use that income to both pay down debt and to establish yourself as a landlord in the IRS's eyes.  6.  

The upside if I end up keeping this property is it should be maintenance free for years with new roof, furnace, hot water tank, electrical completely re run, and plumbing.

@Benjamin Molina Sacramento is getting pretty hot right now especially with the arena nearing completion, and the close vicinity to the Bay.  

Even in this hot market, blight still exists throughout Grand Rapids for various reasons.  

Especially if they're in a hot market, most won't find any value from your type of contact.

They actively fight against appraising at a high value, and, as others have said, can be frustrating to deal with.I have seen instances where I see them do comparables 6+ months ago in an extraordinarily hot market (like Seattle recently), when obviously prices have gone up since then.

Houses in hot neighborhoods that need serious repairs? 

I too am investigating out of area properties since the market here is pretty hot.

Yes it hasBut the market is hot for homes