For instance, what if the tenants see a big issue that you cannot immediately service and elect to pay rent over to the court causing you to experience financial strain or even default on your debt obligation?

Establish a propsal , seek investor and actual have something to offer them instead of realtor services. 

Since the taxes are unpaid, it is likely the property is paid off, unless he has a lender/loan servicer that is just being lazy and allowing unpaid taxes and fees to accrue.

First thing's first; I'm not in the military but THANK YOU FOR YOUR SERVICE!

You don't want another service call on this stove in the future.  

I work closely with US military everyday to keep morale high and to keep service members connected to home and family.

CapEx is included, but is considerably lower because it's a very new, excellent condition property (I considered things such as paint, appliances, flooring that would be needed while we still own the property).Purchase Price $350,000Purchase Closing Costs $1,300Total Project Cost $351,300ARV $350,000Down Payment $12,250Loan Amount $337,750Amortized for 30 yearsLoan Interest Rate 4.6%Monthly P&I $1,731.46Total Cash Needed $13,550.002% Rule 0.85%Initial Equity $12,250Monthly Income ($1500 per unit) $3,000 Monthly Expenses (Including CapEx) $2,607 Monthly Cashflow $392 Pro Forma Cap 7.28% Total Cash Needed $13,550.00Cash on Cash ROI 34.73% Purchase Cap Rate 7.28%Est Vacancy $150PMI $200Est CapEx $63Insurance $80P&I $1,731.46My only major concern is that I'm not meeting the 2% rule (and just short of 1%, even), but this is probably the closest property I've seen, and has a significant cash on cash ROI.

As I am earning relatively well in my job I can afford to service the 15 year loan and the debt is being paid down relatively quickly.

The house was built in 1938, it's a craftsman style home, original hardwood flooring in good shape, original windows but it very good shape, the walls and ceiling had been filled with blown insulation, had a new roof installed in 2017, and the sellers were willing to pay 5k to have the house painted to the color of your choice.  

My husband and I have been running a heating and AC biz for over 3 years now, we do it all; commercial, residential, new construction, equipment replacements, custom duct design & fabrication, service, maintenance, repairs...