The difference in locations between one mile and five miles could be highly subjective and difficult to nail down.

I've never done this before, and I'm not finding a lot of info on the subject here on BP, especially as it pertains to Missouri specifically. 

The fact that there were issues on the property may have jeopardized your loan approval if the appraisal came in subject to repairs, but would not affect the rate. 

Ok, so maybe I am not getting it but I have a hot water boiler with separate zones for each unit.

Real- Estate  is a lot tougher game now because of technology now allowing buyers, sellers to access the market using the internet without using agents but  you do have hot areas that can support  more bodies .

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

If the appraisal deems it to be "Subject to" you will have to use a renovation loan/construction loan to repair and close. 

This includes, water, hot water, heat, air conditioning, cable, security system, snow removal, lawn care.

Subject to zoning I see self storage, parking, tow lot, semi parking, etc.  

In 2016 the pittsburgh market is getting too darn expensive in the hot areas (especially east end).