Also provide your expected Refinance loan terms.Clairify your down payment projection

And a 1031 may not be warranted if your expected taxes are modest.I have couple blog posts on my website that give examples, but BP won't let me link them, so you have to google it.

If the seller is way upside down I would not expect the seller to do that.

Hearing how much they were paying made me nervous that perhaps the building was in really rough shape, but to my surprise it's a lot nicer than I expected.

If you were to pursue the deal you should have the property inspected to determine the condition and life expectancy of all major components and appliances.  

Is the seller expecting that your payments will cover their mortgage with a little left over?

Also, expect some challenges initially, regardless of how much you prepare. 

I would expect it to read that when a tenant requests a repair, they are obligated to provide access.If that is the case, then I would send the tenant a polite, registered letter reminding him he is in breach of his obligations as tenant and informing him that if the behaviour continues you will have no alternative but to terminate the tenancy.Things should have not been allowed to get this stage and this tenant is likely beyond training.  

Daniel,If you are an accredited investor (earning over $200K for past 2 years with an expectation to continue so) then you have some other options besides turnkey. 

They must be broken if your key doesn't work....RIGHT.