I’m considering adding the heat to their existing utilities charges this coming fall (since winter is basically over at this point for my area) and just letting it slide until then. 

If it's just the the lady and her brother involved, you will probably need both their signatures on the purchase agreement as well as all the subsequent doc's that need to be signed during escrow including the Grant Deed.

So while you will defer federal tax and depreciation recapture you will not get the deferral from gain and subsequent tax due to the state in your case.

This may make them look at your refi or subsequent purchase loan more favorably.The other bugaboo is going to be the timing of the 1031.

i have had that happen a few times and i now have a property management company. if i do a deal and it cant cover the 8% management fee then it is not worth doing. my time and headache is worth the money. also i strongly believe bad tenets look for for rent by owner signs ,because they know most owners can't vet good enough or act nice and let people slide. stick with professionals on this one, the same as laying tile and hanging sheetrock.

Here's a link to Owners Briefing Slides for anyone interested.

However, if all of this is factored into your analysis in the beginning (when negotiating a purchase price), you should have no problem acquiring and subsequently leasing out any investment property with neither money out of pocket or seller carry back.  

After two tax increases and a subsequent rent increase, I only profit $18 a month on the property.

Some will be slap and dash home depot specials but some will be quality and people are trying to get out with the perceived slide. 

More often than not, it will end up on the floor and you will simply have gotten your hands dirty in the process to just watch if slide down the wall to the floor.