HVAC duct work insulation is also deteriorated.No vapor barriers installed eitherSome fungi/mold growth notedPlumbingMultiple small leaks under sinks and from bathtub and toilets.House has Polybutylene plastic plumbing which is dangerousMain shut off valve is damagedElecticalSome small exposed wiring and bad splicing.Whole house has no GFCI's or grounding outletsInteriorMoisture spots on ceilingExteriorLose Vinyl SidingDoor Jams and Window trim have moisture damageDriveway need replacementRoofingMinor leaks noted in atticRecommended to replace roof covering, but not whole roofSome fungi growth noted in roofSo some of the question I am trying to tackle with this work is:How much should I budget for the main issues listed? 

It's important to ensure that you can cover the HELOC payments from the income generated by the new property.

.), Designing and Furnishing (amenities, design, theme, linens, etc), and operating (Insurance, Property management or self-management, Tech & Tools, Cleaners & handy people, etc)All of these could be covered depending on who you work with that can cover each topic. 

At the same time no matter how much excess insurance coverage you obtain, there will always be a policy exception for gross negligence and even negligence will likely be covered only under reservations of rights meaning the carrier can opt not to provide coverage. 

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

With your estimate, you might earn $800/month for 2 years and then incur a vacancy at the same time as you need a roof replacement and for that tax year your cash-flow might be -$1,200/month.

@Moshe Marciano it will be up to the title or escrow company to allow the closing to take place by putting funds in escrow until resolution.Often, they will want 125-150% of the amount in dispute to cover additional interest charges, etc.If this is allowed, you can then hire an attorney to sue the PMC for slander of title.

The investor who purchased in 2007 with no cash flow and large leverage would either have to have had the cash to cover 4 years of negative cash flow with negative equity in their property.  

From my employer, I have legal insurance through ARAG that covers 100% of attorney fees when buying a primary residence, filing fees are extra.

There's no roof or sewer for you to manage.