Rather to take a little vacancy upfront versus a hit monthly.

If they filed a chapter 7 versus a 13 that tells me they may mot have the means to pay the mortage and the trustee for whatever is lumpes into the 5yr repayment plan.

Not necessarily on interest rate, but on other factors like interest only period, Prepayment penalty and floating rate versus balloon payment.

We already have a well and water system installed able to accommodate the new build but That's about all I know.

YES - If this is truly a project HUD building where HUD 'guarantees' rent for all units then there are very specific / screening / reporting / inspections requirements that you must meet; tenant income thresholds, REAC inspections, etc.You can do this yourself (HUD has to approve you to self manage) but most owners elect to hire a PM who is licensed / knows the systems / paper work / HUD office contacts.

I would like to finish the basement and rent it to live for free versus paying rent to myself.

Try Canopy it is a great system .

With the right systems and training in place, I have had good luck using Virtual Assistants that I have found on Upwork.2 - you can partner with someone with more time than you have.Bakersfield is being hit pretty hard by wholesalers lately so it is really competitive right now.  

Going forward the best system is to do regular inspections, quarterly, and when any damage is found immediate have it repaired.

Regarding maintenance, lease only mentioned that tenants are responsible for the following:-All electrical systems and fixtures repairs when those are necessitated by the fault or negligence of the tenants-All doors, windows and frame repair -Protection against insect and pest-Structural repairs from tenants fault-Routine HVAC maintenance and repair-Lawn.