When I bought lists I noticed that some are fixed up indicating that the owners care about their place.

The past is the past.I would also point out two things based on your comments that may indicate why you chose to go in a different direction.  1) The use of a self-directed IRA custodian - where they have to sign every document and cut every check - is not well suited for a portfolio that involves a lot of assets or assets that create a lot of transaction activity. 

Then because I have trust issues, I would not be surprised if he's not collecting more for rent than he's indicated. 

Lots of good indicators with population/job growth.

This would indicate your project would have sufficient demand to keep it full. 

Too bad but that's the way it's currently set up and I don't see anything to indicate that that will change.

I do have a portfolio lender that I have used for other deals who has indicated that he is willing to let us do less than 40% down non-recourse as long as the LTV was in the right area. 

On the other hand, I look at a someone who willingly runs up a credit card or a cable bill, and forces the company to send them to collections, as a personal choice and more indicative of someone who makes bad financial choices. 

Essentially, you are creating an option agreement whereby you have the option to buy this property for the amount indicated in the time period indicated.

The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.I hope this basic guide helps.