Hello BP,I'm in a bit of a dilemma.

We immediately notified the developer only to learn that he had some serious health issues and is not contactable.  

You could call the city health inspector out and ask for his help in working with this tenant. 

You can do a Standard (aka "Full") 203K on a property BEFORE it meets minimum standards, provided part of the repairs is to eliminate "health and safety hazards that would violate HUD's Minimum Property Requirements (MPR)" 

There's a larger concern if tenants are in place because disturbing those substances can have health concerns and become a liability if not done correctly.  

I understand the vehicle in is not being operated because of the owner's health condition, not because the vehicle itself does not operate.Also, does the tenant expect to drive again, is is driving now a thing of the past for her?

They also called the health department on me- I was very clear on how long this process would take and what events had lined up.During this time I find that the tenants are barely there but they moved to the location so that their 17yr old kid can go to school in the area.  

Fortunately, my significant other lives with me and helps pay the bills, so I can rest *somewhat* easy until my first commission.Anyways, here is my dilemma and where I lack knowledge.

For a lower end unit where the person had little to no income, no assets, and no concern for their credit health it's almost always a losing battle. 

To buy my third rental property or to pad my reserves.I would say I have pretty health and conservative reserves.