I’m an ex realtor who also has some experience working for a private equity group for a short time before I got a really good gig in a completely unrelated industry that will allow me to have options when investing.

If the keys she gave you work, then don't worry about it especially if they were changed to keep a hostile ex out. 

The ex husband is now deceased, no will, but there are heirs.

I became an accidental land lord after a divorce in 2020 (bought ex out for equity) then purchased a second home as primary in 2020 for 2.85% interest and has increased in equity 115%.

Quote from @Jaycee Greene: A few things I noticed, in addition to having the tenant pay the utilities are:1) Incorporate annual increases in rent higher than 2% (in your area, maybe 4%-5%) with a slightly smaller increase in operating expenses (say 2%-3%)2) With a gut rehab, I'm not sure why you need to spend $128/month on cap ex, at least for the first year or 2.3a) An 80% cash out refi is probably going to be hard to get.

A couple of years ago, I worked with an investor who never updated the contact information for the loan and the Bank call the seller (ex-wife), that day she was mad at her ex-husband and told the bank her ex allowed someone to steal their property from them and they got no money, she was kicked out of her house and there were strange people living there.This could all have been avoided if the investor did this process correct.Get educated, also I do not know your attorney but not many attorneys have the knowledge to do this process correctly. 

@Joshua Christensen wouldn't expenses naturally be less if the seller's just spent about $75,000k on cap ex improvements? 

They get hail storms there.No cap ex or anticipated cap ex.Rent is slightly lower than market because I have long-term, excellent tenants.The Dallas area is still growing, so selling is probably something I'd regret.Been renting the house since 2011, when I bought it. 

How much cap ex is left to do and do you have to do any of it before a tenant moves in?

Gross rental income divided by 2 (50% op ex ratio) equals net operating income.