2) The prospective sellers (husband and wife) are both elderly, so with a longer amortization schedule (targeting 25-30 years) that will outlast their lives, how do the mechanics look upon their deaths (CFD being transferred to next of kin for example). 

As the auto industry has come back, so has Kokomo.

The biggest question being, can he/she take all the risks associated with the tenant and the property (mechanical issues, toilets, etc)?

Unless you have some auto-triggers in your lease with regard to increases in rent or utility coverage (if paid for by the Owner) then a 2yr lease may not be a wise decision.You also want to stagger your leases so that both are not coming up for renewal at the same time (I like a min 3mth stagger).1yr lease gives you flexibility to rid nuisance tenants, slow payers, increase rents, etc. 

I started in 2012- 2013 took a year off to help family and then went back this school year 2014-2015 (I have a feeling that year off will hurt me when we apply for a loan) We got married and both bought our cars cash from the local car auction (we have dealership connections) so we have no auto purchase creditWe live in an apartment.We have excellent credit...I have a 776 score and his is I think, 750 or a couple points higher.The only debt we have is about $4800 I am paying off from school loans. 

It was built in 1930 (this does not scare me, I am very mechanically inclined, plan to do all my own maintenance and repairs), last years taxes were $1054. 

No permit needed on regular repair of home, including plumbing, electrical and mechanical - although work has to conform to established guidelines.

If the mechanicals are in good shape and the units don't need much work, you may have a winner.

It has auto feeder, scans both sides of the page, good quality text printing, water proof ink, can print on both sides and has fax capability.

I think if you ask most people in the know and see the unequivical data now, it says the worst part of this cycle is now over (short of some other external mechanism causing it to tumble again like Europe, our own Debt Crisis, etc).