After this replacement, they will both be in good condition.

Besides the condition of the property and possible repairs, what else do I need to know to analyze a property properly?

IE: House Hacking - 1) Identify a 2-4 unit property I can live in and rent the other units such that net rents cover most of or exceed the mortgage payment, goal: live rent cheap-or-free; 2) Secure long-term fixed rate mortgage/debt; 3) Hold and live in the property as I focus on honing my property management systems/skills and accumulate of capital for the next deal.Step 2: Call financial institutions (local banks, I'd start with Happy State. credit unions, Frost, etc) and figure out financing options for your chosen strategies.

But as others pointed out, you can hire a PM/Realtor to just lease the property and you can do the day to day yourselfAs a new landlord under no conditions should you self manage a C class property.

Originally I put about 40K in to the property for HVAC and a complete remodel as it was in poor condition.  

You could just tell the tenant, you rented the property knowing the driveway was in this condition.

However....I have a seller that wants to sell their house but it’s in horrible condition.

Property in great condition with significant improvements. 0 cap-ex needed which dramatically improves the returns.

The conditions of the sampling may not have been representative of actual conditions, vapor intrusion is highly irregular by time and within a property, can be influenced by weather/temperature, and the source may have been removed or the contamination may have degraded.  

Note that it's possible to get slightly higher leverage than this given some exceptional conditions (ample experience, great market velocity, etc.)