So you want to get a copy of that recorded mortgage and examine the name and property address that the mortgage is attached to; if it is erroneous you work with the lender to correct it. 

Which leads me to believe that the problem is still manageable and can be resolved with addressing what i listed above as well as possibly repairing the drain (for which i have to get a plumber in there to examine) According to the PE engineer i hired the walls do not need to be replaced as the other contractors stated to me.

Your home inspector will probably give you an indication if the unit is approaching the end of it's life, but a thorough examination by a mechanical contractor might be in order if you are concerned about it.

After re examining the property, the fuses are the typical knob and tube but they have placed conduit in the apartments.  

Most people are uncomfortable with this level of self examination, so it is far quicker and easier to discourage you from trying.

If in examining your options you see or suspect you may run out of money do not do it, period. 

@James Phillips I would personally take a minute and examine things closer before jumping in :-First off, I do not get a title policy in most circumstances when I purchase a HUD. 

I guess a similar analogy is that a financial advisor only needs a series 65 (equivalent to passing a real estate agent state exam in my opinion) to become a fee based financial advisor, but one way they differentiate themselves and show their commitment to their profession is by getting their CFP and CFA  credential.

Once the due diligence is completed, the buyer should re-examine the financial model used in deciding on the purchase price.

There are a lot of good PM's around, there are also a lot of shady ones.In a few months, you will have passed your freshman exam in the School of Hard Knocks and will be ready to move on to your sophomore year.