One is in a rural area and the local authorities don't care unless there is a complaint filed, so officially illegal, but not a concern.

Basically I am trying to take this 21k & figure out the best way to put it to use to make more money with another home purchase & flip, tax sale & flip, or any other method. thoughts?

Ivan, turn key is simply one of several methods of acquiring rental properties.

(about 1/4 the way through both) Im hoping to find some answers in here to my concerns but i haven't quite hit them yet.So I thought I would ask... 

do some or all of the above places i mention give cause for concern?  

It's the BRRRR method on a large scale.

Something that I implemented that has also been helpful is the "profit first" method, or the  "rich dad, poor dad" method of paying yourself first.

I know some of the mechanics are old and will need to be replaced soon, I’m just concerned about a city inspector coming in and making me do costly updates right off the bat, which would cost over $50k easy. 

Keep a collage and send it to the seller and express your concern about the deteriorating condition of the house. title insurance has nothing to do with this. 

Or you are concerned as comingling the personal asset?