Buildable space is limited (low supply & high demand = $$)con: traffic up there is misery.

I just got the report from MLS.Naturally being just one man show and limited cash for the bigger houses, I have to be cautious now.  

The nuisance and abatement officer is involved, but they have limited resources and he is pretty much a one man show in handling these issues.

(Technically I signed gave to the agent but agent haven’t mail out to him yet)He emailed me his renter insurance and he paid one month broker fee to the agent.Now before he move in he want whole place to be professionally cleaned and whole place to be paint.which is fine with me.Now he want a new ac, and new light bulb shelf inside the closet to be removed ( I dislike those requests ) and He has a mother who is little difficult.

I work 65 - 70 hour weeks running a restaurant, so my free time is really limited. 

I'm not sure how this would help you, and I'm not sure what you mean by "get mortgages on the full value of the 2 houses".All mortgages are going to be limited to a certain Loan-to-Value (LTV) limit...Usually around 75% for a residential investment property.

She grew up in a time before the American materialistic life style existed.

My experience is limited, but I hope to contribute as is feasible as I take my licks in this arena.

There are limits to going lower and any of that money that isn't spent on property will be taxed (called the boot).Things get tricky when you do combos as an option, then you run into limits of how much they can be worth etc etc.

You could legally form a Limited Liability Partnership that would give you some protections.