I'm a bit old school about stuff like this, just like my dad taught me just enough about cars so I wouldn't get screwed over (too badly =) by mechanics.

Do not just buy a property and get a QC deed make sure you get a property free of leans and encomberances.In the Fort Wayne market there can be recorded leans such as mechanics leans, mortgages and back taxes, water bills and there can be unrecorded encomerances such as neghborhood code enforements which are not always necessary recorded but move with the property to the owner. 

Veterans may get different levels of disability based on their evaluation by the VA.And you're right -- as long as the person is still alive, the money just gets auto deposited into their account. 

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.