Looking for ways to create more passive income for myself.I guess an additional question is how profitable should I expect a short term rental to be in that area? 

If investors attempt to streamline their services, it can lead to a more organized approach to property management, lowers the risk of gaps in insurance coverage or missed tax benefits as well as simplifies communication and reduces confusion.

You will get some cash flow, appreciation, and tax benefits along the way.

Since that one incident, there have been no further leaks, and the water has been on for three days without any additional drips.

I think that equity gains in good areas tend to outstrip the value of cash flow in the long term but if you're pumping money into a rental property you're going to need a hell of a lot of equity to make up for not only the additional funds you put into it, but the opportunity costs lost in that money and the money that's in the property. 

.✅ Investors - Keep detailed records of ALL rental property expenses to reduce your taxable income - helping your CPA spot additional tax saving opportunities.Imperative to use a CPA who is well versed in Real Estate tax code.My CPA is just that - DM me to get his contact information....

As a result, I’m uncertain if any of the properties have illegal additions or modifications.

I recognize that the cost benefit may be negated by other challenges; hence, my question.

The new property has to perform enough better than what you have to pay the higher interest rate on the higher balance, AND ADDITIONAL profit just to payback the $65k you lost selling.

I have a good agent I've worked with for years and letting him represent me not only gives me the advantage of additional counsel, it also gives me someone else to do the heavy lifting so I can concentrate on the deals themselves rather than the intricacies of the actual contract, the process of moving everything through closing and all the hiccups that often come with investment properties.