It is a bit tricky of a situation, as the previous owner gave me the lease he had created with the tenant, but did not have a move-in document showing the condition of the unit.  

My best advice would be to look at similar homes in the neighborhood and estimate what your ARV would be based on those homes and their condition, and work backwards to decide which updates will bring the best value increase. 

I haven't really thought about that as I have never done any type of rehab work - So my intentions were to buy something in relatively good condition and rent it out right away.

Just remember, repairs of roof etc will be needed down the road unless in excellent condition.

They had explained that one member of the family had a diagnosed condition which would benefit from a service dog (sorry to be vague, but I'm not sure if saying the actual diagnosis is illegal).  

I think everything you mentioned @Chris Seveney about the risks with value, condition, borrower difficulties, and potential lien/title issues nailed it. 

It all depends on how much leverage is being used, what type and condition the properties are in, and what submarket of greater Orlando you are looking in, etc.

Would you say, get good property inspections, have MY property managers approve the current tenants and condition of the property, but generally move along? 

Allows landlord to terminate tenancy with 90 days’ written notice and payment of one month’s rent under certain conditions.

So its more of a bet that current conditions will continue and IF they don't the huge capex gets no return and the hold gets pushed to 7-10 years and into another capex cycle.