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

If a seller has a problem, and I find a solution to their problem, what's the harm in that?

The lease will be up in 6 months, and I will come up with my own solution if the tenant renews. 

@Jacob Sampson using the 1% or the 50% rule it's not a blanket solution for all the markets. 

Us at Stop Flipping (on Facebook)Q Home Solutions/Quinton Flores (on Facebook)All of us have lots of free information to share and all are right here in good ol' San Antonio.