The main concern I have, is that the property has asbestos siding, and I have never dealt with this.

I was a winning bidder and was very surprised that the unit was not destroyed inside, but mainly needs new flooring.   

or is the main house just for your own personal use?

CoC is my main measure, but I use the 1-2% rule to decide what I want to consider researching further for rentals.

I am mainly focused on flipping single family residential properties at the moment.

I want the house as an investment but I'm willing to do a 1031 with my main property if I can't find a better option in order to get it. 

Become crystal clear as to your purpose and to the type of vehicle you want to invest in.  

We still have to remodel the rest of the house and deal with rotten window and baseboards etc in some rooms on the main level.

Instead they won't an easy & safe way to park their money.The main thing you (or anyone) considering investing out of state (especially as a novice or beginner) is that it's not really that complicated to buy out of state.

You are refinancing at the same rate and term as the acquisition loan, which defeats the purpose of refinancing.