I do believe finding partners that lived through the last cycle is vital because when the going gets tough, the flakey will bail, but those that have lived through it will be able to weather the cycle but also pick up on the opportunities left by those that throw up their hands and run.

How vital is the purchasing of a software system to the success of a real estate business early on?

Property Management: Efficient property management is vital for the success of commercial multifamily investments.

The house was rehabbed with good quality materials and overall looks great but should I be worried with unpermitted modifications?

@Danielle McClellandHi,I just found Bigger Pockets October 1st 2018 and it has re vitalized my dream.

Education is vitally important....real estate, finances, investing, state landlord tenant codes etc.However without a steady employment income you will not likely go very far, or if you do you will have to work 10 Xs harder to achieve success.

Look for the SFH that’ll function as a multi w basic modifications.

I'm not saying you actually violated any laws or committed any human rights violations, but this is exactly why it's vital to have an objective, documented screening process and publish your criteria on every advertisement for the property that you put out there. 

So proper screening is vital to make sure that you do all you can and not get these types of tenants in the first place.  

It sounds like the seller did disclose to you in some form that HE made repairs/modifications to the units.