I would consider gradually raising the rents to make rate if the tenants are that important for you to retain.

The cash flow is just OK but I'm confident that the area is appreciating and I can gradually push rents over time.

Did you build a solid crew then gradually add layers like a project manager, office staff, then general manager, etc as you went, did you find a small owner/operator and bring them under your umbrella, maybe  partnered up with an existing operation and rebrand under your name, etc. 

I would raise rents eventually, but gradually and only after putting into place value adds and upgrades.

Not overnight riches but a gradual snowball forming into a big snow boulder over time.

Your portfolio should gradually be deleveraged over time if you play to live off the cash flow in retirement.

Doe the property require an immediate cash injection to get things going or is it something that can be gradually dealt with from the profits of the property?

Their only alternative is to wait for an idiot with cash or to keep the property listed and gradually reduce the price so that it ultimately sells for somewhere close, if not less than, what you are already offering them with the new price reduction.For reasons like this, I buy properties like this with cash and don't involve the banks until the rehab is complete and I can get a new appraisal.

Will there be room to gradually increase rents?

But I think it makes most sense for a young and/or first time home buyer to buy it, live in it, and fix it up gradually with sweat equity.