In the end it will save you a lot of headaches and even increase value of the home in the future. 

I think there are too few of those and I've seen some that are in poor condition and it breaks my heart.

It's not something my buyers list would be interested in, but let me give your name to an agent friend of mine who deals with properties in this condition.

There are a couple of units where the landlord pays the utilities (aka my parents) but when I walked by the property last week I noticed they have window air conditioning units.

Some points about me and this property:- it consists of four 1-bedroom apartments - rented to young professionals- this is B property in a B neighborhood - current rents are $2300 ($550x3 and one $650 - the $650 is the newest tenant and the apartments are identical - so it sounds like the rents can be increased in the other 3 upon lease expiration)- it's listed at $139,900 and has been on the market for about 3 months- my calculation on this property is based on full asking price and current rents- The COC ROI is misleading based on the way I did the inputs -- the only cash out of pocket will be closing costs which I've been quoted to be about $7000  out of pocket. 

Each flip *should provide enough profit to increase working capital even though I'm repaying the 401(k) loan.  

You can always increase the liability coverage, or purchase umbrella policy as mentioned. 

Needless to say, I feel they are not going to respond favorably to my dramatic increase in rates.

Just a week ago I had an inspection done from RHIP. two officer dressed like SWAT team visited my property and checked if my property is in good condition. here is my video thoughts: https://youtu.be/fScVegQ4cto?

I went through the property the second day it was listed, and was surprised about the condition of the house.