Don't forget that you will have to refi and you want to do it sooner rather than later or the HML rate and fees will eat you alive.

Sounds like they want their cake, your cake and everyone else's cake and will eat it too. 

It has all the cool shops, nightclubs and amazing places to eat and drink.

Good evening.  I hope all of you seeing this post are doing well.  I am a novice to the real estate investing world.  I unfortunately was not afforded an opportunity at a younger age to be exposed to the power of pass...

The key is that the EAT owns the new property not you.  

Should the other 2 tenants checks come back fine and I am willing to rent the place to them even with the 1 bad egg, am I able to request an additional deposit from the one bad egg?

Your QI forms an EAT and holds the new property while you improve it. 

That being said, 30 years is a long time, and a lot of people were stupid and did dumb things,  ghetto areas are a dog-eat-dog world, whole different culture... so I'd say... look at his history in the past 5-10 years.   

Reconfigure the powder room to open to the mudroom and somehow use that eat-in space?

I’ve saved up a little nest egg and I’d like to invest it.