With other minor wear/tear the $700 deposit is not going to cover it.  

The pictures will show that you used a crappy camera.

This particular lender covers up to 65% ARV.

You might have an existing winter-summer hookup where there is just one boiler that supplies both heat and hot water; if that is the case you would probably be better off doing away with that for supplying hot water, although you might be able to use that to cover one unit for both heat and hot water.

In Tax Free Wealth by Tom Wheelright, he talks about doing cost segregation for all of the pre-existing stuff like cabinets, appliances, floor coverings, parking lots, fences, landscaping, etc.

I am ok with commuting up to 30 minutes, so the areas I've been looking has been from the mid Raleigh area (draw a line from NCSU through downtown) all the way down to Clayton, NC.My fear is purchasing a house which doesn't appreciate at all, having trouble selling quickly, or having trouble finding a renter to cover all costs of the house (including a property manager). 

Assuming all rents are substantial they should be able to cover my debt service and any other expenses needed (repairs, water, vacancy, cap Ex, etc.) 

Will some type of waiver signed with the lease cover me?

From the pictures, the units look to be in good shape with updated hardwood, paint, and appliances. 

Here is how it can play out in both scenarios (there are more pictures on my website).FlipPurchase price $72,150 (includes closing costs)Rehab $40,353Holding costs $2,184AVR based on appraisal $150,000Closing costs on the sale %10,500 (7% includes realtor fees, concessions, and title fees)Profit = $24,813 (if we sold it at the appraised value relatively quickly.