I will have to ask the contractors if that would be sufficient with no ground slope.

As it stands, coming up with a sufficient down payment, monthly payment, holding cost, and reserves, seems like kind of a long shot w/only 10-15k in my market.

The power of leveraging allows the first time buyer as little as 3.5% cash in the FHA version, but with adequate credit and sufficient down payment, the FannieMae Home-style opens the door for less or no mortgage insurance AND is available to the investor.

Please accept my vote as a token of my appreciation.

As another lender mentioned above the rent self sufficiency test which is that all gross rents in the building are equal or higher than the PITIA of the property is only required on 3-4 unit buildings.

When a property is described you usually have a property that is either Stabilized (meaning up and running efficiently, fully leased or close to, basically retail ready condition), you have Value Add (minimal deferred maintenance, operational inefficiencies or capitalization problems or other issues which allow the property to be run sufficiently better) and finally Rehabilitation Condition (needs a lot of repairs, not currently rentable, etc).Value Add Condition properties are more about the new operator coming in and turning it around from a management standpoint and much less about taking a run-down structure and repairing it.

Or, is the structure "institutionalized" with sufficient capabilities to back up key positions?

Because of the widely held belief for much of the 20th century that RE would appreciate in perpetuity, and for most of the 20th century it did, the program was almost always advertised for first time buyers, as they were the most common to not have sufficient cash down payments. 

Looking for sufficient income.

I'd not ever do split utilities, never, under any circumstances as you can get into utility regulations as a utility provider.Not mentioned, the renovation costs, but you know that, especially in older buildings, ceiling joists are not sufficient for floor joists, even if the attic is floored, it may not pass standards as a living space.