Start with the statement you made that you think it might not be possible to purchase a home in your lifetime with your current income. 

Most everything can be upgraded without gutting a home!

The only thing we are a bit confused on is he said you can simply "back out" of the deal if you change our mind...but how would you just "back out" of the contract if there is nothing actually wrong with the home?

This caused it to get less traction as other homes at the same size.

I currently have a duplex and 2 single family homes but I found a 8 plex that needs some rehabbing. 

We would like to split the homes and both have separate LLC’s moving forward.

from what i know it usually takes about 6 weeks for the entire process, if you file for eviction you can usually get the home back, these situations are hard, more often then not the homeowner doesnt know their homes were ever put into auction and lose their homes, but usually with talking to the previous homeowner and proving you are the rightful owner you can get the home back, or at least negotiate them to leave cash for keys , if that doesnt work then file for eviction or notice to quit. 

Several newer homes and growing area.

In 2019 there were 10,000 homes for sale in the Poconos.

This positive cash flow will provide a financial buffer and support your long-term investment goals.Multi-family (MFH) and single-family homes (SFH) are distinct asset classes with different characteristics.