I think doing background/credit check yourself is of course the best way to try and vet potential renters 

I would generally say if more than 10% of your potential investors are going to be asking about it, it should be in the offering memo.That being said, I have seen one page word documents used to raise over $10mm and I have seen 40 page, full color with professional photos, etc.  

It's definitely confusing when the potential cap rate after rent growth could drop the value so significantly. 

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

Together, you can carefully consider the financial aspects by comparing the potential income from renting to the costs of selling, including any repairs needed to make it more marketable.You may qualify for a conventional loan with a down payment as low as 3% to buy a new one.

At the end of the day only you can truly assess this, but my conservative advice is to hold and rent that asset while you get a chance to see what living here is really like, then make a decision.

In it's original form it would potentially quadruple (yep - quadruple!)

I'm considering furnishing every room to make the transition easier for tenants and to avoid potential damage during moves, especially considering the property's multiple stairs.However, since I don't yet have access to the property, there are limitations on what I can do.

Given you probably have no standing, banning them from using the machines or (trying) to force them to buy clothes potentially opens you up for a lot of legal risks. 

It's important to thoroughly research the auction process and potential financing options before diving into purchasing the 6 unit building.