We just have to be brave, DIY is easier than appear to be.

The big difference in list price vs appraised price appears good though.

It appears you are trying to combine 3 different strategies together.1.  

I thought the water on the floor after my showers was "user error" but despite my diligence in making sure the liner was stretched all the way across and tucked around, the water kept appearing... in the middle of the tub length no less.  

From the photo it appears to be acoustic ceilings. 

It appears to be near impossible to find a SFH that would rent even close to 1% RTV when we move out and we both don't want to commute 45 minutes to work in order to find a multi-family that would work.  

It appears to me that there is a good chance to make money but the risk of house damage and outright destruciton of the home exists.

It may appear to be an attractive proposition now, but what if your portfolio grows exponentially in a short time to say 30 units?

However, looking at the current investment landscape, traditional options appear pretty limited.

Appears the exterior landscaping is leaving something to be desired.Maybe you can pull the listing and address the landscaping, maybe taller fence in the back (if allowed by city), fix concrete.