We're fixing it...

You can always get a quote from a licensed contractor to fix/repair any issues, they can pull a "repairs" permit for some of the items, and this also allows for the cost to be rather low for the permit. 

They both have "regular" jobs in addition to this -- she sells houses, he fixes them.

Am i being completely unrealistic in searching for a long term 20- 30 year Fixed loan product at a reasonable rate?

However, that is typically structured at 6% for 5 years fixed, then 20% adjustable with a 20% downpayment.

The current first is for $102,000 but they do not want to give the borrowers more money to payout the property taxes or fix the roof- that's why have are looking for someone else.I agree that the risk likely outweighs the reward. 

@Charles SelfI actively invest in Huntsville AL (Buy/Hold, Fix/Flip) and work with a lot of In & Out of State investors buying investment properties.

My goal would be to buy it cheap, live in it, fix it up myself, and then eventually rent it out.  

Based on discussion with a potential property manager, we could cash flow $300-$400/month per unit on a 30 yr fixed or break even on a 15 yr note.

USREEB also agreed to fix the minor items on my repair list including the grading around the house and drainage ditch in the backyard.