You could offer to pay for a few months at a storage unit or give them a discount on rent to supplement them loosing the garage. 

They should scrape off any loose texture, prime the surface, texture, then prime over the texture.

Better protection is an arc-fault breaker, because arcing from missing insulation is one of the dangers of K&T.As for insulating, obviously anything that looks like it is loose or coming apart I would re-wrap with good quality electrical tape (electricity off, of course, when you do this) but beyond that you want to keep combustibles away from the wiring. 

Mind any potential code violations, deferred maintenance, and your big ticket capex items(re-paving parking lot, loose handrails, amenity repair, roofing, scope plumbing lines, etc)It’s unclear to me if you’re buying this with your money or other peoples money.

Or it could also be bad breakers (check if it's only happening on certain circuits), defective electrical service supply/voltage fluctuations (unlikely unless the whole neighborhood is having the same problems), service entry wiring defects, a loosely connected neutral or other issue with the neutral, loose connections anywhere in the circuit with the flickering lights, or a number of other things we wouldn't know without being able to inspect the system. 

Not sure if I use the words Hard Money to loosely.

. -1 set of exposed wires in basement-1 loose ceiling tile -a fixture on the ceiling that is loose- a sink In the basement that is too close to the electrical panel He has not paid rent and I have begun process of eviction.

While I never want to loose money, loosing it this way is maybe better than paying $10,000, $20,000, $30,000, $50,000 to one of the guru who leaves with your money and no property.Rents sound good for what you paid, so maybe you can sell and make some money out of it.

Reading between the lines he is a Trump supporter and expects Trump to loose in November.

Yes, you can make money with vacation rentals homes, but you can also loose your shirt, especially with the distance.