By contrast if they have solid credit and a reasonable DTI, here's your solution.

@Matt Berklacy There are a bunch of "gurus" that offer the lease option solution.

It seems like you already planned well on your own.You will get lots of insights and advices from other BP users for sure but one thing I like to tell you is to look for technological solutions a lot.

I am sure some others will provide great advice on what solutions exist.One key will be getting your wife onboard.

I looked up potential solutions - cheaper than eviction, maybe provide your tenant with some of these "sploofs":"To mask the smell, many people construct what is known as a 'sploof' – a simple device through which the smoke is blown in an effort to mask its smell with other smells.

We are all just making assumptions of what construction type and issues you’re having and trying to offer suggestions and solutions based on assumptions.

Is there another creative solution to funding the rebab portion of this REO deal using money we already have in 401k, traditional and Roth IRA?

I would not hang any blankets on the inside of those closets. i am assuming as each one lines up and vent pipes run up through each floor that theses are not direct vent units, therefore the 3rd floor has 2 pipes coming up from below. try and seal around each pipe, floor and ceiling, this may help with sound travel but may not do much, no real good solution in that situation.

Here are a few links that could help.https://www.fwhs.org/landlords/https://affordablehousingonline.com/housing-authority/Texas/Fort-Worth-Housing-Solutions/TX004

Here is some info on LMA: https://www.ml.com/solutions/lma-account.html