If so, how did you approach it initially?

Our initial thoughts have been to look up in New Hampshire, specifically the Lakes Region or up near Conway.

I think leveraging the initial property even further with such tight margins is a train wreck waiting to happen. 

Just attempting to get them to email/call me back has been difficult after I DID NOT choose to buy their services on the initial call.

After the initial inspection we sent a response to the inspection asking for $21,500 in seller credits to cover the roof and furnace (both needed replaced). 

Any advice, tips, or scripts for making the initial contact and navigating this process would be greatly appreciated!

If the permanent financing will allow you to recover most of your initial investment and the fair market rent covers the principal, interest taxes, and insurance with cash left over, you have a BRRRR.

There is a legit chance of a loss of initial investment.  

Because after purchasing the new rental for $700K that leaves them $300K initially, so take $260K to pay off their mortgage, and still enough left to cover a good chunk of the taxes owed. 

As a result, we have significant water damage to the floor and rugs in that 2nd floor bathroom and a bedroom, plus there is even more significant damage to ceilings, walls, furniture, and rugs to 2 bedrooms on the first floor.Our initial goal is to dry as much water as possible with wet-vacs and dehumidifiers.