The property was self-managed by a local investor who has failing health and is selling off his properties.

A source of heat adequate for healthful living conditions.

She basically has anxiety about thoughts of having to deal with tenant and repair nightmares to the point of where she thinks it would take a mental and physical toll on health and so understandably has massive aversion to the idea.

(you wouldn't want it to risk your financial health), Is this a rental I would want to live in? 

I am and have been for 15 years a professional personal trainer and health coach and own a online training business.

Assisted living people are just one health crises away from a nursing home or hospital.

Example 1: A dental surgeon who makes about $400K per year buys a property.

It may not make sense as a flip, but the numbers work out for me because:it's close to work (DTLA)the neighborhood is very safeIt's easy to rent out rooms (close to Cal State LA, USC health science campus & DTLA)I'm only putting down 5% and the monthly expenses will be very lowIf it appreciates, that'll just be an added bonus.

FHA has some requirements for condition, but they are basics like the roof being in decent shape, no wood rot, no "health and safety hazards", components up to code,etc. but they don't require every little nit picky thing a home inspector may want to come up with.  

Tenant agrees to not allow any personresiding on the premises, or any guest, or invitee to use controlled substances(including alcohol and prescription medications) in a manner that will eitherdisturb the peace and quiet enjoyment of other Tenants or neighbors adjacent tothe premises; or endanger the health, safety, or well being of Tenant or anyother person.GUESTS.