Risk is minimized due to the amount of rents, property condition, property price, and location.

Run your comps and be prepared to adjust a suggested price based on condition, layout, and other factors.

Refinancing next year would likely allow you to lock in a potentially lower rate than the 8% you're currently at, especially if the market conditions continue to favor lower rates.Avoid Duplicate Fees: You're right in thinking about avoiding duplicate fees for the refinance and HELOC.

The lease states the tenants are accepting the unit in its current condition.

If the tree was a straight tall tree that did NOT overhang the property and it fell across the property line damaging your garage then that could be the neighbors liability if they knew or should have known it was in poor condition.

They're spending tax-payer money, so they'll cut a check without batting an eye.Document condition before and after with photos, inspect regularly, and you should be fine.

You'll likely pay high premiums, face lots of claim denials due to "pre-existing conditions", and deal with service delays.

So if you are buying a property the traditional way, using an agent, you won't usually get answers when it comes to the condition.

You have to keep in mind that a plex will never be valued the same as an SFH, and renovations may not have the same effect on the value as an SFH.If renovations are not needed right now, I would work toward getting the rent to market for the as-is condition and then renovate each side when you have turnover. 

Make sure you have smoke and CO detectors in appropriate places, GFCI outlets near water, functioning mechanicals, make sure everything is in good condition and you shouldn't have a problem.