Do you have the money to have a new heater put in it of some sorts, electric baseboard, natural gas, propane- as well as a new water heater.

If their mentors did t teach them, they need to whatever.Start small and Make Your Bug Mistakes Early.  

Who does he have to do framing, electrical, plumbing, HVAC, drywall, paint, tile, cabinets and counters, flooring, roof?  

The water heater is not tankless, but it is out of sight and it is electric. 

Also look into if you're going to have to bring the whole house up to code if you do this, I mean electricity and insulation, and everything else that they require in brand new homes.Good Luck!

(Walls, electric outlets, etc.) 

As you know labor is the biggest expense and sometimes the owner can float out a lot of the expense on time for the products.A good example of this is a 4 plex that needs complete rehab minus major electrical or plumbing and the bid from the contractor may be $44,000 in labor ( $11,000 per unit )   The contractor may suggest I will take half of the first two years of rent or the equal of same. 

Unfortunately, I'm experiencing a bug and it won't let me post this months event. 

Keep in mind this property is relatively turnkey with most capital improvements completed within the past 5-7 yearsIn the middle of the month of May, I get a call from my tenants saying that their electricity got cut out and the oven and air conditioner don't work.

If you're interested in multi-family, I highly recommend starting out with multi-family with your first VA loan as it will be easier to get a single family residence after that.If you decide to pursue multi-family, you'll want to ensure that each unit is separately metered for utilities (water, gas, heat, electricity, etc.) as this is a requirement under VA financing.