Most importantly, does any of these submarkets have any economic anchors  like state government, major universities, major health care centers, or manufacturers that are independent of the economy like military suppliers that employs most of the residents of that submarket?

The banks don't care so much about what renos could cost, should cost, or will cost, it's what it's worth when you are done.

The housing stock in Belgrade is fabulous and I've been hearing more and more form my northern and western european friends that they are loving to travel to Belgrade for discounted specialized medical care and/or a generally lovely holiday. 

I have two kids, a dog, and a cat. 

If you make it look like you don't have equity, don't own other properties or make it hard on them they are going to go after something easier.Take care of your properties and treat your tenants fairly and you will likely not have any problems.

I'd like to highlight three issues in your post that you don't seem to be looking at carefully and asking, "What can go wrong with this?"

The back house had long term tenants and the place looked dirty - wasn’t taken care of or cleaned in a very long time.

I argued we were already done and the contractor had been paid and they relented.But, yes, if you have an insurance claim on a mortgaged property it is reasonable to expect the lender will want you to give them the money and they will pay the contractors.Sounds like you did not carefully read all the paperwork at closing. 

No one cares about your property, your rehab, or your finances as much as you do.

The city dose take care of the water, sewer, and streets.