I've researched apartments.com and have called area apartments to determine rate ranges.

In that price range I would look in Fort Worth.

If you cannot get a sufficient appraisal or qualify for the re-fi, you would be foreclosed on...the seller may ever insert that you would quit claim the property back...there are a lot of moving parts on this...

I've found that in the $600-$800 range per unit the housing authority is on par with rents if not higher.  

In the price range you are suggesting I am thinking you are building something in the 1200 sq/ft range.  

Most probate properties are not the kind of deals with sufficient margins for a quick turn.

When you wrote: "Rent would be in the $1300-1350 range", are you saying that they are currently ASKING $1600 - $1750 (or, is the "normal" rent $950 - $1000)?

The concerns introduced to me yesterday were that city inspectors could fine very severely for improperly dealing with such hazards and that abatement and other procedures can make a deal in my price range unprofitable.  

Ask buyers at REI meetings what kind of deal they are looking for (neighborhoods, price range, etc.).

A relative may be sufficiently motivated to work with you.It may be that a formal Conservatorship has been established.