The selling realtor mentioned that they had to remove the "kitchen" cabinets to convince the lender that it was a non conforming storage unit. - What sort of risk am I taking by taking on this property?

@Mathew Fuentes Everything you mentioned sounds good, how’s the kitchen?

Treated for bugs, replaced the interior and exterior "Zinsco" Breaker and service panels ($10,500), remodeled 2 bathrooms, replaced 3 of 5 water heaters, smoke detectors, added kitchen and bathroom GFCIs, 1 AC unit, 1 new dryer, replaced 2 windows, repaired several more windows.

:) Here is a before and after of kitchen.

I went upstairs to check and the tenant now installed a water filtration system in the kitchen sink.

I went upstairs to check and the tenant now installed a water filtration system in the kitchen sink.

For rentals, it doesn't seem to pay to upgrade kitchens and baths if the existing ones are functional.  

Business cards are cheap to design and print.

FHA loans are designed for low to mid income earners to get assistance to buy a home to live in.

Typically engineers design stuff in concrete for 50 years before doing any major repairs.