A failing system typically cannot be simply handed off to a buyer without remediation and replacing an aging septic system with a modern alternative treatment system (ATS) can be a significant financial undertaking.

My nice suburban house with good schools in Indy went from $140,000 in 2013 to $285,000 in 2023 (range is $277,000-$300,000 if there was a multiple offer situation).

I have never thought about this situation before.

Step toward financial freedom How did you find this deal and how did you negotiate it?

Investors typically don't want these.Not sure about this specific situation, but typically on condos you own the sheetrock in. 

Are you having financial trouble?

Every week I write a brief, hopefully insightful, dive into real estate and financial markets, for all you tubular dudes and dudettes out there.What am I listening to?

To increase cashflow to move into a STR situation, which then has tax benefits, yes. 

Are there any guidelines for situations like this where the tenants would need to stay somewhere else while the renovation is in process?

If you are NOT in a negative cash flow situation I would definitely keep it for the rest of your life.