We thought about doing seller financing for the $172K but it will likely take 10+ years to pay the full amount at any sort of reasonable monthly payment.

It often takes new organizations similarly long times to get that sort of information.

Without accounting for management fees (I have not yet decided if I will try to self manage), and with planning to raise rents to typical market of $825 for each of the smaller units, and $1200 for the larger unit, does this seem like a worthy first investment? 

Half the states do not even require any type of Disclosure whatsoever.But as sort of a baseline, damage that has been repaired does not need to be disclosed in most states.

I don't know what they tell you in CA but here in NY we are suppose to reject any sort of income during the time of the eviction.

That stopped when I stopped using third-party cleaners, but I also started to only leave enough for the stay.I use a small Dawn hand dish liquid that I fill between guests and larger hand soap dispensers in the bath and kitchen that I fill between guests. 

It's not fully closed as in drywall, it's sort of a faux wall on our side, but the tenant could open the door on his side and come through if he wanted.

If you decide to sell and find an investment property with a greater cash flow potential.A 1031 exchange would allow you to indefinitely all of the tax and use it to your advantage to reinvest into larger nicer property/properties.

I've had them long enough to keep pushing up rents so that I am at the top of my niche, but know not to exceed it because I'm just about at the point where if I raised rents another $50-$100 I'd be crossing over into the lower end for larger units.

Ideally, if you can’t start in your town, try to choose the closest town to you with a larger population.