So I bought a single family home for 315k that was considered inhabitable.

It probably needs to be addressed to keep the house safe to inhabit long term even if we keep it as a rental.  

It's more than just about payment of rent:  it's about KNOWING who is inhabiting your property. 

One of my lots had only a garage on it, which the city wouldn't allow, needed to have an inhabitable structure in addition to it. 

After getting new property management we made contact with inhabitants of both units and attempted to strike a new lease with us.

If for some reason, you're inhabitant wants to sell or rent it out for market value at anytime, you all still win!

I am asking because that is a science and often inhabited by regulars who know how to bid you up on the duds if you haven't done it.One tip I would give you before you go into Indiana would be to really take a hard look at your 7 units and 10 doors and see if there are any underperformers in the bunch.

Cosmetic issues like the one's you explained do not pose an inhabitability concern.

From a liability position the previous owners get walk a way from a nuissance property and an uninsured property that could be inhabited by squatters. 

That would mean owner inhabiting or as a long term rental.