I use any rental income to pay for utilities, business expenses pertaining to the house, etc.I plan to open a new bank account for the Philly house for expenses/income but can it be the bank I use here, or has to have a Philly location? 

get a real estate license and list them.. your doing a ton of work and bringing a product to market that wont sell through wholesale channels.. that's a huge waste of your time money and energy if you good at helping sellers.. get listings listings are money in the bank in many areas these days.. and its a career that you can do for a lifetime.. 

So glad you've already plugged into the Bigger Pockets podcast - that was a huge source of education for me when I first started.If you haven't already, I would recommend finding a real estate agent that you trust, and also start talking to lenders (banks, mortgage brokers, credit unions, etc.)

I was told the banks usually don't notify these entities during the payoff process.

My problem has been finding good contractors that don't break the bank. 

I met with a local bank that has commercial rental loans on a prime rate + 0.75% on a 5 yr fixed, 15% down, and amortized over 25 yrs.

I would start with local banks that should be more motivated to loan on revitalization projects in your area.

We have never had such a combination of problems, exacerbated by the Australian owned banks.   

Does anyone know of any portfolio lenders and/or small banks that offer non-conforming investment property mortgages with 30-year terms?

I have not any luck with hubzu in NJ but in PA I got lucky on property. your competing with others and possibly the bank representative who bids with you (a hunch).