Disadvantages — low appreciation, tenants do get into conflict, more tenants expect you to pay for the snow to be cleared and the grass mowed.

I don't think anyone can answer about an appeals with a lawyer when what you need to do zoning wise isn't clear.

My wife wants us to move into a nicer house in the next year so I want to keep my monthly expenses clear for that...I know not an investment but it is what it is).I found a property for sale for $650,000 that would work perfectly for my needs.

@Eric Dupuis Just to very clear, I'm not saying selling the house is the best option (or even recommending it.)

Permits, utilities cut off , estimates . 

Just to be clear capex is large repairs like a replacing a roof/painting the building/unit remodels etc.

Does this approach cut into your return?

If you want to protect your investment, spend the time being clear and thorough in your scope of work.

The owner is around 65 years old and she doesn't want to use a realtor, doesn't want to be a landlord anymore, is free and clear on the property, and wants to finance the property for her retirement income.  

So, the bank assumedly "bought" the property at a "real" auction because (1) it wasn't happy wtih the bid amount, or (2) it wanted to pursue the owners for the negative equity, and needed the property to sell at the fair market value.That makes me think it is clear this is the primary lien.