Not that I'm avoiding alcohol for any specific reason, I just had this overwhelming feeling that not only could I find a better use of the cash, but that I'm just growing out of old habits, and now not sure what newer/better ones to replace them with. 

Personally, I avoid HOAs like the plague because there will always be a bit of an unknown that you cannot control.

The reason I'm even doing this is because I now have over 20% equity to avoid PMI fees and free up my VA loan entitlement.

This problem the OP has could have been avoided in the first place.10-20 min of my time is not a big deal in my opinion.

If you, or someone else (this needs to be the same person every day),  won't have the time every day to "babysit" the rehab, if you don't have extensive experience in rehab, if you don't have a large cash savings that will be tapped during rehab process (at the least enough to cover the holding costs...and then some)...remember, there will be no income coming in during the very long rehab process, I would avoid any long term involvement that is based on a vision of gold. 

When you are 22 and already looking to avoid the rat race in favor of real estate, that can be a disappointing endeavor.

Either way you get rid of a problem and avoid a vacancy and/or possible eviction ban. 

Pitfalls to avoid or at least be aware of? 

Avoid houses with tenants in place.

.- Yeah, we are trying to avoid headaches rather than create them. - Good question about the dual meter: it is, however, I am going to confirm today if the adjacent property is a duplex (which I am pretty sure it is) and if that is a separate meter for the second unit.