What are the steps I'd need to go through to purchase this property?

I suppose if the property appraises well and you can show the costs incurred you will will receive favorable financing at time of purchase and recieve your return of capital through the same financing process.

This was an off-market deal that my wife found through networking.

I am yet to get one though, but I am eager to get my first and be there every step of the way so eventually I can be the head honcho aka the sponsor of these deals.I am getting a bunch of leads every week, through brokers, lenders, PM's, etc but mainly through brokers.

I am looking to get connected with people in the area who could potentially take through some growing areas and areas of opportunity in the city.

It feels like your post came right out of my head because I went through the same exact thing.  

They try to work it out with the tenant amicably, but end up getting the bad end of the deal.Go with @Alexander Szikla's advice without delay.Tenant make payment through their online portal, which bars partial payments.

Looking forward to learn about real estate investment and improve my knowledge through the experience of pros in the community.

I think its going to just take some time for the end buyers in the chain (the people responsible for buying the MBS through the whole process - generally banks, insurance cos, pension funds) - by nature are very conservative and slow to adopt to new things like SRO.Its a tough situation because the message a lot of times ends up being "rent it out traditionally on a single lease since thats more conservative" yet they are out of touch with investors who can only cash flow in this current environment with creative solutions such as rent by room, etc.

And I think also to think through the probability of these outcomes.