I do have additional coverage for the sewer since I knew it may have issues before I bought the property. 

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

I could probably rent the house as-is but I would hate for it to be an issue if there was ever a fire or something drastic.

Quote from @William Dorrough: I currently either purchase and value add large scale multifamily properties or develop, and build ground up my issue with scaling is we have done this without brining in investors i have a great deal flow with a good track record im really looking to do more i have the capacity but have the need for more capital in one way or another  Scaling without investors can be tough, especially in multifamily.

4.Tips to avoid similar issues in the future?

Giving them skin in the game ensures they’re just as invested in success as you are.

I don't see it as an issue but many still do, at least in my small town where the majority of renters are elderly people looking for low maintenance housing options.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

There are rules and situations unique to each state and that is why you want to go with a local lender vice someone just reaching out to you telling you they can do it. 2) Better recourse if the lender screws something up: a local lender has more skin in the game so to speak as if they screw something up their name will be mud to local real estate agents in the deal.

(Property Meld for one)--- Owners often think a PMC can just enter a tenant's home to make repairs, but don't really understand the potential legal issues of entering when a tenant is not home.--- Owners don't understand the percentage of maintenance appointments tenants miss!