About the only downside I've come across with W2 + rental income is that you don't have much of a choice on when you're receiving the income.

Brighter lights and lighting features can help too, so can new smart lighting.

I feel like if someone's headed down that road through their own choices, who am I to interrupt a life lesson in the making? 

Turns out the contractor was right so now they’re going to have no choice but to replace it.

My choice would be to mortgage and pull out every penny possible or sell and start over if they do not cash flow with full leverage.

It's the safest way to begin imo and a great choice for your first investment.

I do suspect quite often.This in itself causes a shortage.I also know that any RE Investor who is looking for his next investment in NYC should be smart enough NOT to buy to close to a low income housing project.

As far as the loan, I was considering going with a Military Choice loan from Navy Fed as they do not require any money down and will do 100% financing to include fees.

The house is old as well, with some issues (all 3 furnaces will need to be replaced within 3-5 years).What would be the wisest choice for a first investment?

The dummies or ill-timed will loss their fanny and the smart players will remain, and further cash-in on the foibles of the dummies and ill-timed.When does this happen?