Apon leaving the property, the man living there walks up to our car and lays some serious news on us.

I haven't finished researching this, but this Lawyer basically lays out the thesis on this approach: http://www.jgutierrezlaw.com/uploads/Subdivisions.... has anyone here ever done anything like this?   

In the lease, it also states that they understand that now all liability lays on them, and that they will coordinate shoveling/salting/lawn maintenance if they cannot keep up with it within the city's requirements.

(Pull carpets, tear down drop tile ceiling, etc) I do not have enough capital at this point to fully handle the renovations and repairs.  

I would research other markets and find one that has the yields you want and then contact an agent in that market to get a lay of the land.

Always good to have a nice lay of the land before making any out of state purchases.

Have tile floors, same appliances, same paint color for all 4, etc.

So they went ahead and put up the sheet rock walls and tile, paint and finished the bathrooms. 

Contractor for some general finishing work, flooring & possibly some tiling.  

He seems to know his stuff, has worked on boats all his life, was able to lay out for me in detail a couple options to redo my kitchen and bath cabinets for $12/hr and he'd use me or someone for grunt work.