I don’t have as much concern with someone who was late on some loan payments, realized it, fixed it - and was upfront about it.

As far as the information you have provided is concerned if you get 1K in rent and expenses are 50%, which is typical on a SFH, that leaves $500 to provide a return on your investment. 

I think even submetering one side will cause tenant complaints, arguments, non-payments, etc.

Just wanted to say thank you to everyone on here who has helped answer my questions and address my concerns along the way.

Anyways before closing I addressed all of these concerns with the seller and was presented with a signed and dated termination / notice to vacate from the problem tenant agreeing to be gone before or on March 31st, today.  

With short term gains in mind, I am concerned about the tax consequences.

Most rehab deals need to be all cash which puts an offer with conventional financing at the back of the line as far as sellers are concerned. 

I have looked at comps (Versailles, Strata, P&P, and so on) which are "filled" and generating the rents I would like, however I am concerned that the "A Type" market I am shooting for is extremely limited, and could be eliminated should Allentown start swinging back the other direction.

This is causing me to be unable to purchase a home until the deployment is over and by then the interest rates will have skyrocketed even higher then the 7 percent I was already offered.

As mentioned it can cause parking issues and noise problems for the other residents.