The issue why most wives don't like this strategy is because they have to move into an ugly home that will be a construction zone for the near future and they have a hard time looking past that.

Just to complicate things further, a capital call has been issued.  

With this in mind, if you intend to leverage short-term debt (hard money), it's even more vital that your underwriting is thorough and that you have the correct systems in place to tackle potential issues.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The executor of the estate also should have had some basis for that as well.Fair market value when your relative passe as @Jake Baker and @Cory Carlson said.

But in reality, holding on too tightly limits growth, causes burnout, and actually costs you money.Why Letting Go Helps Your Bottom Line✅ Frees Up Your Time – Instead of handling every single tenant issue, you can focus on strategy, acquisitions, and big-picture decisions.✅ Allows Specialists to Do Their Jobs – A leasing agent will lease faster than an investor juggling 10 different tasks.

They were abandoned and needed significant work which wasn't a huge issue but in terms of HUD owned properties i heard there can be significant processing periods.

Price point relative to what? 

As someone relatively young, obtaining a conventional loan has proven challenging for me.

While the heater issue adds extra stress, addressing it promptly will protect you from further fines and penalties.