4.6% is a great rate 9n a commercial property so I'm not sure I would mess with that unless you could get a long term, fixed rate loan.

Unless you have long term fixed financing you face (1) rate risk and (2) refinance risk. 

These are fixed expenses.Then take your total income less your fixed & variable expenses:$2200 - Monthly Rent(220) - Capital Expense (roof, etc.)(220) - Property Management Fee (you could do it yourself)(110) - 5% Vacancy (money set aside each month to cover future vacancy)(110) - 5% routine/emergency maintenance(150) - Water/Sewer/Trash (I pay ~300 every other month in Tacoma)(1600) - Mortgage (hopefully includes PITI)(210) - Negative Cash Flow/month.... 

A house that looks like that probably wouldn't sell for $429,000 fixed up unless it is in DC, NYC, Boston, The Bay Area or LA

You say the market’s hot, what about considering:1 taking the bank’s option to Convert to a 30 year fixed term, with maybe piti of $500/ monthly (See if they will lend you 75% of the appraised value OR use the purchase price Plus a detailed list of your costs and repairs) , and then2 selling on contract or lease option at full market price+, ie $119,000 possibly on terms.Look for 10% or more down and finance them as long as your loan is for.This would recoup your initial investment, $12,000+ and costs plus profits And give you passive income of what $200-250+ net monthly?

@Larry C.Do you need a GC to fix the violation only or to do the entire project?

I'm in the middle of doing those now, the fees aren't bad, the interest rate is 5.49%   30 year fixed. 

Ie can we rehab it, fix and flip, live in it as a house have, reconfigure the layout, does the property sit in the path of progress? 

What can be done to fix the property management issue in South Bend? 

yes i have the downpayment, the bank requires a 25-30% down i was thinking about using the loan for a flip i found a property for 65k it needs about 25k in repairs and houses in that area sell for $150-180k and some for even 220k with similar square footage im thinking to grab it fix it uo and worst case  scenario sell it for $125k thats $35k profit im assuming $25k in repairs bc the contractor said about $15-$20k and u never know if something pops out