With that they may be able to recoup from their renters insurance (hopefully you require this)  If locks are damaged and the unit isn't secure you would need to take care of that right away.

And even this requires some funds - closing costs on the buy, monthly payments to the seller, and other holding costs, insurance, appraisal on the refi, etc.

Set clear and consistent application requirements so you can base your decisions on solid facts.

Run your numbers based on youre required return given what youre likely to have to spend and the amount of headache, risk, and work you have to do.

Gas heat would require constant tank refilling and it would be very bad to run out in the winter.

Assuming 7.5% interest rate, the negative leverage would require you to put way more than 20% down just to break even.  

Rental should be $1,600 a month.This year, I plan to build one more rental property, and it will require financing.

In my experience in MO, land bank properties are very low priced (these are generally properties/parcels that weren't sold at the tax auction), but they often have significant tax liens on them that must be cleared in addition to the "sale price" AND they require a significant amount of rehab in order for the properties to be inhabitable. 

I have been told by a contractor that the foundation of the building is intact, so it does not need to be torn down but requires a "gut renovation down to the studs."

I suspect it's an old line that failed and required replacement.