I think there are some building components that can extend within the setback but we don’t have much room to work with anyway. 

Like @Jeremy Pace implies, look for problem properties with worn out features and components.

Nothing is more important than the PM component.

Because my friend/boss and I share the same values, we have aligned forces as business partners and begun this project with the primary aim of attaining both of our financial freedom. 

If meth was used in the house and you test for meth or any component thereof...not sure what test would do for you?

And I am also guessing, from your statements, that the current owner was not a stickler for maintenance and may have squeezed all the juice from the lemon (leaving you many of the the major and minor component to upgrade). 

However, through some weird alignment of stars, planets & pixie dust, I met with a local investor group & was paid a small fee to turnover all my research, documentation & personal notes regarding this property.

I own my own home, have flipped one house and am imminently closing (should be this coming week on both if the stars align correctly) on the next two (one rental and one flip). 

So this means credit worthiness is a crucial component on the secondary market which helps ensure originators qualify their borrowers.Also below 620 is subprime.   

It is important to build a team of proactive experts,  I believe its ideal to build a relationships with many types of professionals like a mortgage loan officer, insurance agents, realtors. everybody will add to your overall knowledge...ALSO-get a good accountant who is aligned with the day to day of property management that can help you with taxes, (this will be a factor in qualifying for loans moving forward) -get an attorney who is experienced with putting together different types of deal, you can do joint ventures with other investors, you can do paperwork deals with your attorney, acquire properties through tax liens, put a property under contract deal directly with sellers using notes and many other techniques that im sure other people are discussing here.