You get used to the heat, and yes it us different than CA.

-has gas heat and electric appliances.

1) vermiculite (likely asbestos containing) in attic underneath blown fibreglass - not an issue unless we need to access / do work in the attic (see ventilation below)2) soffits are poorly vented but I was told there are ways to vent them and install baffles without going through the attic3) three bathrooms have no ventilation fans (they have windows) and the ceiling on two of them is peeling / potential mold or rot4) main kitchen hood fan is removed and didn't seem to be vented to the outside anywaysSo considering the tenants are smokers (saw windows open with space heaters on during the inspection) I'm thinking the ventilation issues are priority to a) improve the indoor air quality b) reduce the amount of heat leaving the home.

However the bills are outrageous and the tenants leave the front door open without any care to heating costs.Originally posted by @Sebastian E.

This is located about a block from Coonley, it's a prime location, but the house needs tons of work: roofs, decks, dated baths and kitchens, HVAC heating issues, floors, paint, etc. 

Unpaid rents prior to your purchase, if collected belong to the prior LL.If the tenant is getting basic services, heat, water, safety etc then you wait till the lease is up to start any renovating-or you do cash for keys or pay for their lodging while you are fixing the place.

if the house is not keeping the heat in I would work on that before anything else.

And good advice on the oily rags- the drying agent chemicals in wood finish oils produce an exothermic reaction (they give off heat).  

(There is a really great calculator in the tools -> rental property calculator portion of this site)Based on what we saw for insurance, what utilities I have to pay, (one furnace so I have to pay heat approx. 6 months a year, which we got a fixed rate thermostat so they can raise it past 72) .  

When you get there, if they know what they are doing, the owner should have a data sheet on monthly expenses (heat, electric, water, sewer).