At the bare minimum you'll have to do some kind of value add, and in most situations you'll have to even factor in appreciation.

According to the seasoned investors on here, you need at least a bare minimum of double to triple that amount to become successful unless you have one hell of a direct mail campaign or get lucky, but I'm not sure if that is driving for dollars or Listsource (see question to Cody above).

Second, what they have is normally awful and will barely protect you.

It was listed barely above the county assessed value and appraised above the listed price.

Trust but verify.And the only time that i've gotten estoppels, is when the landlord can't find the lease, or the tenant is month-to-month.Most of the time, the estoppel is bare bones: Tenant name, is it month-to-month?

Currently own apartment building that barely has lead levels but since state came in we are obligated to treat.

As long as you get enough cash out of the refi for the DP, and as long as the original property you are refinancing still cash flow (and I don't mean barely cash flowing), this could be a good idea for you. 

However, it's very hard to find the properties which even barely have positive cash flow (including maintenance, cap ex and vacancy). 

b) Are both possible in Illinois? 

If the tenants question, the back yard is not normal wear and tear (a few bare patches, yes; a destroyed lawn definitely not) and the house was not cleaned.