I wouldn't buy anything where as an owner I am responsible for utilities.

My goal is to obtain my real estate license and utilize this tool as a means to get the inside scoop on deals and investing in general.

I too would get an extension on the escrow and my contingencies and hold off on inspection until you have green light.If the seller is getting sued and it is moving forward there is a good chance of him filing BK.If the property is directly involved that suing party may file a lis pendens and could tie you up.What are your damages if seller can not perform, you can file a lis pendens and ties it up on your end.Get title info if you can and seek counsel of attorney or be ready too.Can you close before all this pans out, maybe and if title is clear and you cover your bases might be something to consider.Or might be advisable to let it go and save yourself the headache but that is dependent on the deal itselfKeep us posted

Late payments, high credit utilization, derogatory public records, collections?  

It is a product they offer for those unable to utilize the VA loan, however after calling them for the second time to verify that I would qualify they stated that it can only be used for secondary properties but not rentals.

Are you paying utilities? 

Property 1:Rent: 1625Mortgage: 560Repairs: 1000Owner Operating costs (utilities): 382Management: 114 (8%)Taxes: 100Capex: 112Vacancy: 70Insurance: 67Property 2:Rent: 1745Mortgage: 765Repairs: 3000Capex: 175Vacancy: 87Utilities: 60Ins.: 70Taxes: 105Management: 140 (8%)Thanks for the help @Taylor Chiu

Healthy portfolio, good paying job and have travelled extensively. 

And in Des Moines then you have to factor in utilities paid by landlord too.

Along with that, you may also be able to utilize a 203k loan which allows you to finance the renovations of the property, roll those costs into your home loan and amortize them over 30 years.