A third option may be to just begin to explore other management firms.

I would probably look at how I could wrap up the tenancy (month to month notice, or at end of lease) with the least risk possible.I would explore the complaint some more just in case (more as risk management based on the tenant profile). 

Marketing manager: This person executes your marketing plan every month and explores new marketing ideas to reach motivated sellers better. 

They are exploring using an FHA loan as they don't have a lot of money for a down payment.

I know this is my personal decision but I feel like this is a very generous offer and I want to explore the options and hear some opinions.

This is definitely a more unique approach.

Using this website: http://www.movetotacoma.com/explore-neighborhoods/ as a reference, I'd call this the upper part of the South End neighborhood.  

Eventually I'll probably want to be mostly passive but it's hard to get good at something and not enjoy it :)Anyway, if you're a frequent poster here chances are I've already read a good number of your posts so....THANK YOU for being an amazing resource for me already as I explore this exciting corner of investing!

Do explore why it is priced lower than its alternates.

Then we'll rent the property up and enjoy our monthly cashflow for the years to come :) This deal is unique because it's lipstick flip (interior & exterior paint make up 80+% of our renovation budget).