You start by explaining that "abandonment" is defined by statutes.

Clearly defined your goals will help much here.

Ideally, if you have a REaltor you know, you can ask them to give you a comp on the property you're looking at so you truly know what similar houses are selling at right now and can be valued at.

But they complained before they got the letter, which clearly defined a reasonable material/labor cost for each item. 

I'd be concerned about the remaining lifespan of the property's major components (roof, foundation, HVAC, electrical, plumbing)

As always, consult your RE attorney.Going the LLC route makes ownership stakes more clearly defined and offers liability protections but jeopardizes your above-stated goal of lower down payment.

@Sayli Mulay - think you need to take all the components of real estate returns into play to evaluate:Cashflow: $200Mortgage pay down (rental): $150 (increasing monthly)Appreciation:  Fed Target for inflation is what I use (2%) = 2% * 150,000 / 12 = $250Total monthly net worth gain = $600 (for every point of appreciation this increases by $125/month)

We can also shape that reverse exchange to accommodate a value add component to the new property using 1031 proceeds which is a huge bonus.And during that 180 day period your are generating the income from both the new property and the old properties that haven't sold.It's not the easiest transition. 

I think you really need to define what you’re looking for in rental properties, then you can start looking for the right city and the right submarket!

Additionally, there are some major property components which aren't visible from a walk-through of the property, like plumbing and electrical, and assuming they need work is safer than assuming they don't.