Haven't been there, but pay attention to the foundation - if the floors are level there no action needed.

The seller must've been very motivated to retire...are you buying any residential properties now or does this project pretty much consume all of your attention these days?

Recently, a lot of the market factors that kept people away, are the same that are drawing attention.

Or what are other tips to start gaining traction from the beginning? 

I have a followup question - I will realize a lot of capital gain from this home in Idaho, so I think unless I purchase a new primary residence I will have to pay that capital gains tax. 

I don't have much experience dealing with Section 8 and I wonder whether there's a risk of bringing attention to a non-conforming rental to the Section 8 authorities. 

Run through some of the features you will need like setting up a property, moving in a tenant, receiving rent payments, and publishing online applications.Pay attention to which platform feels the best to you as you perform these functions.

Make sure this enough gains to make it worth worrying about.

What would the capital gains be on the sale of each lot? 

I would sell and take your gains.