The only way I would do this is if the play was speculation for appreciation and an exit planned for say two years down the road where I could cash out for a healthy return after all negative cash flow was accounted for.

Plus, since you have relatively no credit, you will need to have a healthy cash reserve.

Also 1 bedroom units typically attract tenants that are not going to be there for too long.Now on the flip side, if you are able to convert some of the units to 2 bedroom units then you have something going.This is why I always look for a healthy mix of 1 and 2 bedroom units. 

The tree is very old and healthy, but its roots are MASSIVE and are growing near / under the foundation of the house (monolithic slab).

“What type of soil is the house sitting on?”

As long as you have healthy cash flow, it won't matter if your tenants are paying your PMI for a while. 

Also, where are the deals with the $ room to sell to an investor/flipper so they are enticed with a healthy enough profit for them?

However, I have been exploring Minneapolis where property prices are much lower and yet there appears to be healthy demand for rentals as reflected in pretty good cap rates and low vacancy rates. 

There are also conventional lenders that can provide these types of funds, but you'll need a healthy balance sheet on your own to qualify (or a lead investor you are partnering with).

They also had a soil test done in 1991 and the result came in fine.