Apologies if it is long, but I have been going back and forth on this issue for a while and would like some input. 

It seems that most of the older houses we have looked at have some kind of legal issue.

This is how we are supposed to do that here in Florida, per law.

However, anything that impacts functionality like plumbing, HVAC, or safety issues should be handled before listing to avoid turning off potential renters/buyers.If you’re re planning to lease it, tenants will expect everything to be move-in ready before signing.

For example, ask about typical costs for HVAC repairs, plumbing issues, or roof work.- Use Historical Data: If the seller has accurate financials, their expense data can be invaluable.

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

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.

If it's rehabbed nicely, then you will no issues finding a tenant.

First time using a contractor to fix a few issues at my property before putting it in the market.

His God complex and giant ego won't allow him to reflect on the damage he's done  keep in mind if the SEC detects a serious issue and one that could harm investors right now they have the power to take emergency action and shut them down.