My business partner owns a roofing company but has weak credit and more limited cash flow.

From my experience the first team member to recruit will be a local Project Manager-someone who wants to help you long term as your eyes in the field and boots on the ground. 

I need to redo the roof of the house lift up the second floor, the entire front deck of the house, demolish the old stucco, And replaced a lot of rotten wood and messed up beams.does anyone have any recommendations? 

For a beginning investor, I'd recommend more turnkey properties to get your feet wet while you build trust in your boots on the ground.

Does it need a roof and new heating system or just paint and flooring. 

So, yes, you can absolutely have a great rental business as an out of state ( and even international ) investor, as long as you have a solid team that are your boots on the ground. 

Get a roof inspection too.

I am not able to take equity out of my condo because it is currently on the blacklist due to HOA fixing the roofing and a Fannie Mae rule stating, if more then 50% of the condos in that community are owned by investors, I may not be able to refi.

I just completed a second boots-on market tour of TN markets.

If it is a normal occurrence I would be concerned, connect with local boots on the ground before doing anything out of emotion.