Whatever they find that's not up to their requirement has to be repaired or ripped out and redone.The risks will be all on you if this is done after closing, so if you go that route get as large a discount as you can. 

Buy a large $600K property and use 25% or $150K for investment and 75% or $450K for your primary. 

They had a large, judgement against them.

Behind these 2 stores is 2 offices, and a 2 bay automotive garage, that is currently rented out for $700 a month all in a large fenced in yard.

If using ABCD, this would be a C+ / B- or a 7 on 1-10 scale. 

Remember you're going to want reserves, and any bank will largely require 3-6 months of expenses in a cash account (although some banks like mine allow a Roth IRA or brokerage to stand-in for cash reserves, so make sure to ask about that).

I know that Brooklyn property is generally expensive but I know it's also a large area .

A lot of deals are never listed and taken directly to known buyers so you need to be on their radar.There's also some syndication opportunities around Indy if you are looking to scale.

While I am younger than Patrick I am on the same track as he is ( I am 45 and currently manage 15 properties while working full time)  And would like to most likely exit completely at age 60 and find something truly passive yet still give me as close to the yield I am generating now (between 14 and 22% annually) I don't expect to get the returns I am making now on my rentals while self managing but at age 60 I hope to scale down my cost of living as well and not require as much, plus I will have 401k as well as social security so my plan is to have multiple streams of income. 

BP - I am considering making an offer on a four-plex that is waterfront to a large recreational lake in Washington State.