I m not sure why the current owner has them rented lower, but the area and condition of the units can support $825 with tenants paying for electric only.

After seeing the condition of the place I would try and reduce the PP.  

I put in a conditional offer of 170k, offer was rejected due to being conditional to financing but the lawyer dealing with the property is willing to work with me to get me what I need to get financing approved and make a unconditional offer.

Depending on what town and the size/condition of the apartment, you might be able to get more than $1200 a month for a 2 bedroom with the lack of available rentals on the market currently.

If they already agreed on the terms and conditions of the job then I think a tip is not warranted.

My question is can I charge the tenant and security deposit even if the unit is in such terrible condition or should I give him a 30 notice to clean and get rid of that odor before I do my walk through?

But I'd rather wait those extra few days and get the property delivered back to me in good condition, then file with the courts.

I had been looking at MFR in Gainesville but all that I have seen so far are in horrible condition or were in an area that if there was a F+ class, those would be an F-.

I just can't find the comps to support the price in its current condition or even ARV. 

The key seems to be "refering for a fee".(10) Any resident lessee of a residential dwellingunit who refers for compensation to the owner of the dwelling unit, or to the owner's agent, prospective lessees of dwelling units in the same building or complex as the resident lessee's unit, but only if the resident lessee (i) refers no more than 3 prospective lessees in any 12-month period, (ii) receives compensation of no more than $1,500 or the equivalent of one month's rent, whichever is less, in any 12-month period, and (iii) limits his or her activities to referring prospective lessees to the owner, or the owner's agent, and does not show a residential dwelling unit to a prospective lessee, discuss terms or conditions of leasing a dwelling unit with a prospective lessee, or otherwise participate in the negotiation of the leasing of a dwelling unit.