I intend to take care of this problem as fast as possible.

I live in LA...so same problem as you're running into in NYC with prices and [lack of] returns.

You mention Rich Dad, Poor Dad, there is a line in the book that says, not I can't but how can I so you can, we all learn on here and once you get past it you'll look back a realize it was not as big of a problem as you first thought. 

I have not done any marketing to find homes, right now I just use MLS which is part of the problem. A

This is not a huge problem as we'd be happy to purchase more expensive properties as long we can make the numbers work.

They're not a problem, as long as you don't disturb them

There is a large disparity between what 3/1-3/1.5 smaller homes are selling for at about 220K and what larger newer 4/2-4/3 homes are selling for at about 340K, and homes with additional apartments touching the 600K range.The best use of the property would be to complete the main home and sell as a home with an income/mother in law suite, and is what they would prefer to do but are not in the financial position to do so at this point.Mixing investment as a family is not a problem as we've already done that before, and my Mom just posed the question of if I would want to do that.

It should not be too much of a problem, as long as you use a good electrician and the wiring in the house is relatively up to date.Did your estimations include capital improvement costs?

I know others here with the same problem as you.

but in talking to local Credit Unions, it's not a problem as long as my credit score is still within thresholds.