And my guess is that most people would not want to be displaced for months or years so I don't think finding motivation is the issue. 

The biggest issue was foreclosures and lack of comps.I feel 65k is fair based on the cash flow, but I'm just trying to figure out what my next next step will be.

Stefano, Most agents would be happy to help you set up a search as anyways in most cases we are used to getting into longer term relationships and a 2-3month wait period is not really an issue, a lot of agents will want to know if you have been pre-qualified as that will usually help them understand how really ready you are (regardless that you will not be looking to close on anything for a few months).

If you hire a contractor who is bonded and insured through a policy issued by a local insurance agency, what is covered?.....

Until you have restored utilities I would not let tenants back into LIVE in the apartments,, no plumbing,, that's gonna be a big Poop problem, and NO electric,, is gonna be a safety hazard and issue,, no smoke detectors..

Please immediately place a stop payment on it and re-issue another one. 

I would really love to have the opinions and advice of those on BiggerPockets that may have faced similar issues (or just those brighter than me of which I think there are many here).  

How difficult is it to find quality tenants (i know they will be low income typically and have some issues but hopefully you know what i mean) and how long are properties vacant typically?

The fine is almost $400, and being unaware of the issue had no way to prevent it.

Home is 11 years old and the owner has never had an issue with it, but not sure I want to take a chance on a long term hold. $125 million payout in a class action lawsuit definitely says there is a problem with it!