With limited options to sell this property as is, We are weighing the possibility of fixing it up to either rent or sell.  

BTW... are there limitations has to how many loans you can have under one name. or am I missing lots of information?  

I assume these systems were mostly updates of old octopus systems (fully gravity fed).Local HVAC guys suggest leaving as-is unless someone wants to put AC in - but if we can avoid limiting the (future) borrowers to non-conforming products, that would be good!

@Daria B  the area where we want to be is very limited for any real estate for sale in my price range.  

I think at worse it is a long term stable area with limited appreciation but I don't expect depreciation.  

I've found the HUD inspections to be very limited, and sometime even incorrect.

Elderly investors should have some test for sophistication and/or limits on investing (10% of wealth?).

One issue giving me some concern is the limited opportunity to force appreciation with this property. 

Now I am looking to shadow an experienced investors from the Pittsburgh area before I start making deals and try to limit some mistakes that come with investing in real estate.

Based on my experience, the Fannie Mae DTI ratio limit of 36% is not so restrictive.In your scenario, you are expecting to live off of $5k a month ($60k) a year and that does not take into account things like maintenance, repairs, PM fees, etc that will eat into your passive income.