With the remaining I was thinking of buying a house cash and invest the rest.Background….ME: Associates of Science in HVACR (Heating Ventilation Air Conditioning Refrigeration)I no longer do HVACR it was during the recession and now I am in the Manufacturing Industry job title Machinist and have been doing it for a year now.

The thing about heat is that it easily transfer and heat damage is permanent, no way to undo it.

What type of heat is it?

The heat source appears to be a single electric quartz heater in the wall in each unit.

Purchasing a 2 Family that Landlord pays heat with one single boiler for both units.

One thing I would recommend is that you find a supplier for a product called, " perma-therm" It is an insulating paint like product you spay on the outside of your unit and supposedly will bounce off or reflect about 90%+ of all the heat hitting your unit.

Your CapEx may be a little low unless that number was given a lot of thought (roof replacement, appliances, heating/cooling system, patio, etc.).  

- If used as a hobby work space, then heat and AC might be desirable.

FHA does not allow peeling paint, cracked windows, heating/cooling issues, electrical issues, and a bunch of other items.

Also have you calculated holding costs, taxes, insurance, heat/electricity, water/sewer?