I had made a list last year from the kind people on BP...I called around 12 banks, found the 3 with the most competitive rates...lost the list and all my info in a house move...I’ll get to calling these banks tomorrow!

1 - yes2 - I don't think that the drain from your house to the main sewer falls under the "Municipal Sewer" category that @Joshua Thompson mentioned, but I would have to check before giving a verdict.

He's the man on flipping houses

You'll get the most favorable financing terms and offset your housing expense while paying principle.

It’s next door to her mother’s house.

Joshua,My wife and I have 3 STR's.  1 in Missouri and 2 in Florida(1 is a condo and one is a house).  

It's tough to recommend without sitting down and talking to you to determine what your goals are.What I would suggest is just buying an occupied or vacant house that doesn't need reno or minor reno, then either have a realtor rent it out for you and you take over day to day management, or you can put PM in place. 

With as much talk about creating affordable housing in Colorado Springs, there is going to have be some discussion about how to address these rising costs in housing that are not directly related to the sales price of the home.I wish I had a better answer for you, but this is going to be an issue for HOA's in the area for years to come...

We put both houses in the MLS and have had to reduce the price by more than 14% and still no offers. 

During the Depression and up until after the War they lived 3 families in a single house until they had each saved enough to buy their own house.