However, it needs a LOT of work to bring it up to snuff to bring in worthy renters.

I always bring a small pliers and pull up a carpet corner in the closet when viewing a place. 

You can always bring it back a little if you know for a fact it will be less, but you want to make sure you are conservative on the initial review.

Yes, the financing can be a bit more expensive in general given the upfront MIP and monthly MI (MIP is Mortgage Insurance Premium and MI is Mortgage Insurance), but the rent they bring in can be used by your lender to help you qualify.Here's a good example. 

It is 6 units all together with each unit bringing in roughly 800 dollars based on the market.

For example if me, my wife and one other person form a LLC that would bring my investment to 33.3%.

@Ali BooneGentrification helps local residents as it usually brings middle class people to the area.

He is generally more concerned with the condition and location as he knows I wouldn't bring him something if the numbers don't work. 

The house is headed for foreclosure (and auction) and my thinking is that I can get ahead of this and bring the mortgages current contingent on a purchase contract signed by him if he gains executorship.

He only owes $87k, and I was going to bring the seller financing option to his attention but before I did that, I was going to ask him to check his loan docs for a Due On Sale Clause, which would mean he would have to completely pay off the mortgage first and then do seller financing.