But if on the backside that knowledge is going to increase your monthly intake by $10k+, it's probably money well spent.

I imagine there are a lot of 3/2 that probably sleep 8-10 and if you can offer a slightly larger bed count and a cool game room/theme room you can differentiate yourself a bit from your competition and get some extra revenue through slightly higher rate (extra person fees, etc) as well as an overall higher occupancy. 

The area should appreciate over the next few years as well.

Well, just to start, you are the one buying it not them. 

There is a legal doctrine known as "adverse possession" by which trespassers who openly inhabit and improve a piece of property that is otherwise abandoned may gain title to that property after some specific conditions are met.

There are also 80% LTV options available as well around 7-9% interest too.

full transparency, my partner and I got ourselves into trouble last year forgetting to file our local taxes in our new mucipality as we did not realize local taxes needed to be filed as well. we ended up hiring a tax accountant at the very last minute to help (after receiving mailed noticed) and went through all of this trouble for a measly $20 return. at least we got something for it, I suppose. 

I would just hire a guy to remove the popcorn ceiling - they might be able to weigh in as well as give you a quote. 

What made you remove all the drywall as well?

I can look to see if there are bars on windows, graffiti everywhere, how well people care for their lawns, etc.