If you have plans to sell it in the future, you probably want to do a full remodel anyway, so there is no point of spending too much on it now.

It looks like you are not able to get lending because your Debt-to-Income ratio is too high.You should figure out what your DTI ratio is.If you are buying cash-flowing rentals, your rentals should actually be helping you get future loans easier.

I can see this becoming an issue in the near future.

Figure out what your goals are for the future (say 10 years or so), then try and figure out the best way to reach those goals.

However, lots of older homes that either need a lot of work or would require a lot in the near future.

Secondly, I can invest the $7k I’m saving elsewhere and double or triple the money I would use now to purchase another home in the near future.  

I like to share this story as a cautionary tale and while nobody has a crystal ball and can predict the future, understanding the end goal can  help investors understand  whether they invested in a market that can reap the true benefits of SFH rental ownership or perhaps point them in that direction. 

Since the interest rates are high and rent's wont cover mortgage , i'm ok with paying money every month with hope equity build up and rates going down in future  .

How can I verify this in the future when there is no power to the home? 

Then you have to take responsibility for maintenance.You can rent a comparable home for $3,000 and the landlord handles maintenance.It makes sense to rent for a year or more until prices balance and you can save $1,000 a month towards a down payment in the future.