When the appraisal was done upon purchase, the market rate for the identical unit next door was $1325.

I believe the application & requirements (regarding preservation) are close, if not identical, and would allow you to qualify for both. 

We got it for a steal at $92K, and we put around $10K into it.

People will be lazy, they'll steal from you, they'll cut corners, and they'll lie to you.

And from the sounds of it, you are quite stressed.As stated above, cut your rate well below your competition to steal marketshare and gain reviews. 

If you find a cash flowing property that you're getting for a steal, the bank may look more favorably on it and analyze the deal more than the borrower.  

Thankfully plumbers are using pvc and other plastics these days so if you upgrade, you'll be upgrading to something not worth stealing.

and I know that is accurate because 3 identical ones in the complex sold for that.   

But he offered a very nearly identical path forward that is actually better:- buy first primary with FHA- in 12 mo ++ after saving up another 5% down, buy next primary with conventional 95% LTV

He has at least 2 or 3 nearly identical posts, bashing a company that is his direct competitor (even though he makes it very clear that they are not competitors 🙄), so that could warrant a post coming down.