I would love to see them transform due to the fact that I could afford the resources around.

FHA approved appraiser must determine value for property and also do a health/safety inspection.  

In many cases, divorce was the problem, and the person who kept the house could not afford it on their own. 

Your health can get you anywhere and anything.  

I have been warned recently by a more experienced investor that it is critical to inspect for lead and asbestos during due diligence as there could be serious health, legal, and financial risks to not doing so?

If you were a buy and hold kinda guy which affordable Pittsburgh neighborhood would buy your first rental?

Keep learning and keep searching for the deals, once you find that deal you'll realize not only can you afford to invest, but you can't afford not too!

offer from someone lacking two nickles to rub together that can't close because they can't even afford an appraisal.

If they can't keep up, they probably can't afford the place any longer.Depending on how involved you want to get, you could also encourage or facilitate the tenant getting a new roommate.  

These are simply suggestions and your own risk tolerance will guide your final decision:Slow and Steady: $100K should be more than enough to afford down payments on a couple small multifamily units.