First, you can hire someone who has vastly more experience than you have, and at a level you can never expect to accumulate.

Whether your tolerance for risk allows you to scale to larger purchases, or you'd rather mitigate some of that risk and buy smaller properties is totally up to you, your goals and your comfort level.

This incentivizes some level of basic decency.

And the easiest route, if you've got capital already, is to just start with rentals.I think your next step should be to run some more numbers until you trust your gut a bit more.

I'd love to connect with you on a personal level to get an understanding how you do your lease options / sandwich lease options in Michigan. 

The up front work doesn't scare me since I have a trusted friend who owns a residential construction company and I know I can get great labor rates from him.

Summary: 3 choices:(A) leave as is, slowly increase rents to market levels (while saving for boiler explosion)(B) overhaul electric, maintain rents(C) best of A&B, keeping the boiler system in service and paying for some heat usageThoughts?

Realtors and Contractors are great but don't always trust what they say.

I suggest posting signs as @Nathan G. recommended and placing "No Swimming" rules in your online house rules on your Airbnb and VRBO listings.I would even include the "No Swimming" sign in your pictures too.Doing this MAY reduce your risk to an acceptable level.

I paying 7500 on a 78k property.  2500 of which is a loan level pricing adjustment which is something dictated by fannie mae.