When that paint chips/peels that cement board will soak water.

Let's table this for now, put a pin in it, get some synergy going with the boots on the ground, get our ducks in a row and go after the low hanging fruit, then work hard-play hard for awhile, "pivot" to the "new normal", peel the onion, open the kimono, do a deeper dive then have a "come to Jesus" moment and think outside the box.

Not long ago I looked at a posting someone put here on BP that someone said “fully renovated” (or similar) and you could clearly see the gutter was rolling over, the windows were old, paint was peeling and that was from a single shot of the front of the home.

As it is, in San Mateo, I'm keeping my eyes peeled for a triplex or four-plex. 

FHA will not allow any type of peeling paint or safety hazards so be sure that none of that exists.

Water can spray back against the wall and cause mold, peel paint, or eventually eat into the wall.

@Brian Kelch that's a good idea on paper, but there's zero chance they'll do the job right and you'll have to strip all the paint off once it starts peeling off a year later.

Lawns might be overgrown, paint is peeling, windows are in bad shape.

Chemical treatments can mask smells, for awhile.Fire restoration is a specialty and I'll bet the inspectors will be very tough on a new guy breaking into the business.

(And keep your eyes peeled this year for some version of these two titles...)