Would need to know about locations of your buildings and current rents to see if there is anything that can be done now to get numbers a bit better.

Yes, you are foolish.At 100% things can not get better and only go wrong.

Try not to get locked in too long 4. we're not necessarily looking to go "all out" in terms of theming, but if we did, what kind of revenue does that bring/ROI can you expect, and which Renos for theming are best to do from a cost-benefit analysis, and what do they typically cost?

Sounds like the person knew what was going on with their credit report as they have filed reports in the past. 

Our plan was to use a DSCR loan to finance (25% LTV).

- My first thought is offering cash, but the home owner would most likely just let it go to foreclosure because of how low the offer would be. - My second thought is offering some cash and taking over the loan - there are no liens on the property yet.

Buying a turn key rental, in an area you know or knew well, with a property manager you've met and trust, in an area that is large enough for you to have other options to find contractors and property managers? 

Quote from @Ryan Davies: We have heard of them but have chosen not to close deals through them since we have found better options.

You are not going to make anything on it, so you will not have to worry about capital gains. 

How has it been going so far?