In the long-run $5K is not a fatal mistake so take a deep breath and try to think it through with out the emotions.What is your goal?

Take a breath.

You need to take a deep breath...

I don't mind working on the house so much, but I hate having to deal with the codes department breathing down our backs.  

First concentrate on getting to a level of income that allows you a little breathing room so you're not worried about paying next month's bills. 

It is not a problem unless it is disturbed, gets in the air, and is breathed in.

. $500 or more, perhaps, but since my lifestyle only supports a more passive approach to investing I won't hold my breath for stumbling across any gems that would offer such a return anytime soon.  

Dont worry about bashing me, I live and breath Cleveland RE, nothing anyone can tell me I do not know.

Don't get me wrong, obviously the numbers and details are important, but keep it simple; when you finance, will the rents be enough to comfortably cover the debt service and other expenses (vacancy, capex, PM, whatever you budget for) and leave you some breathing room?

And neighbors would look at my lawn and say under their breath, " these absentee owners ruin the neighborhood".I finally gave up on tenants doing when I had constant issues with one of them when neighbors complained to me, then to the town, the town send inspectors.