This isn't a slam dunk deal but a few considerations that make it look a little better:1.

What considerations should I be taking aside from the obvious (carpet, curtains, wall paper removal, vent cleanings, etc...). 

Primary consideration is buy and hold; but also open to a flip if the price is right.  

It solved the problem without a major demo and I think it shows that when buying rehab properties, that even buildings like this are definitely salvageable and worth consideration if the price is right.

Any other considerations we're missing here?

Is there anything else to take into consideration like a family?

I've never seen that before in all the credit reports I've run.As for collections, I generally take into consideration the TYPE of accounts in collections. 

I'm going to say something unpopular and suggest that you get rid of the arches and raise the doorways, or keep the arches and at least raise them up closer to the ceiling -- it will make the rooms feel more open -- I think, I can't tell from the pics if their height is as low as it seems. 

I think it's important to recognize something like debt for what it is: an unwavering obligation to the lender.There are two considerations I like to think about for this kind of discussion:1) Debt you have personally guaranteed.2) Debt guaranteed by the property.The 2nd case is much more common in a commercial REI context.

I'm not sure if it was because I'm looking at an FHA loan that I came across the rental income consideration or if I just had the wrong idea but God point on always checking with Professional before assuming stuff like this.