I'm specifically looking for dumpy multi-family homes that are going for a steal, but still habitable.

@Alejandro B YoonIf state law does not make AC mandatory in our leases we list it as an amenity and is not a necessityTypically heat is required for habitability but air conditioning is not.

Also make sure that you do your due diligence on each property before you bid, a title search is vital for this.

In conditions such as those we face today, fulfilling redemption requests would require us to either substantially deplete vital cash reserves, or, even worse, potentially sell assets into a down market, likely at a price far below actual value.

In most places heating is required for a dwelling to be considered habitable, and you'll probably get a lot better tenants if you have AC in Jacksonville as well to mention that it should help keep mold at bay better than nothing, If I were you I'd cough up the money to put in a new HVAC system.

Or would I change my investing habits and diversify my portfolio to be less heavy in rei?

Perhaps a dumb question - but is the property habitable right now? 

-It's vital that you work with an experienced agent for these transactions.

People live up there year round so it's safe and habitable all year round but a very different environment.

Cars are owned outright (older but good vehicles) cable television was cancelled, insurance policies reviewed, spending habits assessed etc.