The house has updated plumbing, electric, roof, windows, and all that but does anyone see an issue with a buy and hold strategy on older homes? 

Also, with the cost of electricity now is it even worth trying to get the system up and running?

It's a municipal water authority.They lasted eight months and after they left,  didn't pay the electric, phone and water bills.

The owner pays for electricity for Radiant ceiling heat which adds to about 18K/year. 

In addition she took the electric stove(2 mo old) and the refrigerator.

That’s another reason I prefer side by side duplexes, so you have seperate water meters and gas and electric too and the tenants pay those bills.  

Floor joist are cracked, That wall also had electrical in it.

Can you pull your own permits for electrical, plumbing, heating and cooling if you are going to live in the house in Harris County and for the city of Houston?

I have seen a room built that simply took in an existing above grade window and built a closet which worked fine in a basement and it was not permitted (permit not pulled), the sheetrock had to be cut for an electrical inspection, it passed, it was approved with some money.

There are all kinds of notes out there; real estate notes, automobile notes, mobile home notes, business notes and, notes secured by most anything that can be financed or held as collateral.