(I’d look into the illegal inlaw legalization first, because you may be able to grandfather in some existing conditions, making life easier.) 

Plumber who fixed the leak says very possible the leak happened prior to the inspection, based on the condition of the floor and the rust on the pipe.Trying to figure out what next steps should be.

All purchased in 2014.We mostly spent funds (and budgeted for that) on purchase to get them in good condition.  

Except taking 2 months to get a property in turnkey condition rented?

The property was in excellent condition.

No rentals in my area offer washer dryer hook ups or air conditioning.

.$400I build in Prop Management just to be conservative but I'm going to manage the property until I get to the 5 property mark.Now the bad/unknown.Each unit has an individual furnace but they are all 25 yrs old.The exterior stucco needs patching & painting.The roof is stated to be in good condition, but I think its got to be 15 yrs old.I'm trying to research how this property might appreciate in value over the years. 

It was cashed and we met her the day/night of move in (with our moving pod ready to be unloaded); only to find the home still in poor condition. 

Now these properties are in the condition that you would expect a $9,000 house to be in.

And if you have had it for some time, are you satisfied with its condition and durability?