My gut reaction is there needs to be some communication on all sides and estoppel completed with the tenant.

This was a full gut renovation to include new kitchen and bathrooms with custom tile and granite, new LVP throughout, paint inside and out and new windows.

Exterior paint, refinished floors, some millwork, contemporary lighting and plumbing fixtures, paint, gut kitchens and bathrooms, landscape/hardscape work, finished basement.

2 things I noticed in your numbers, 1) the rental income is exactly 1% of the purchase price, which is not a bad gut check to see where things fall but very rarely does something in today's market meet that requirement. 

I say go with your gut and make sure it cash flows!! 

The heloc took a long time (months) just to find a banker to talk to so we started the remodel gutting almost everything inside (including the kitchen) but a bathroom and a master bed.

Even if the insides were trashed and full gut was required I still think it could make sense financially at the right price.

The other 6 houses are vacant and need total renovation ie. gut job and potential total roof replacement.

Good luck and don't let anyone put you down if your gut tells you to go for it!

We added a new metal roof since the carport showed signs of past leaking, new vinyl plank everywhere, new paint, gutted the kitchen, added new appliances and new cabinets, added beadboard panelling to the kitchen and one bedroom to cover up some old wallpaper, new baseboards, replaced all wood windows with vinyl, new carport ceiling, new wheelchair ramp.