That's why I'm thinking that the HML would be the best bet for my first go around although the more costly route.  

In a smaller, rental property like this one you can probably install a simple IKEA kitchen for about 7-8,000 pounds but add 60-70% if you hire a handyman to do the work.I have no idea if your rental or expense numbers are correct but local resources will be your best bet for that info.Hope that helps!

Is our best bet just to rip out everything and install plywood subfloor throughout the house and then install new flooring? 

Learning is progressive.

Might be too late now but your best bet is to attend one of the board meetings and plead your case.

I bet you get a lot I stares.

I've been interested in doing the same thing with a 203K but multifamily opportunities scare me in Indianapolis (with a majority being on the east side).I'm going to monitor and hope to connect with you on your future progress.

I think as a longterm hold it could be smart bet in the right location.  

Its never too late to make money, things can progress as fast as you want them to. 

However, if the maintenance issue is an bigger one, I usually need to make several trips: Check it out myself first, meet someone to get an estimate, check progress of work if it is over multiple days, review final work, etc. prior to paying for the services.