Then I talked to my partner (who has way more experience than me) and he thought it was interesting.As the process has moved along over the last week (emails and phone calls) it has become clear that the seller (in Texas) has the property (in Ohio) under contract and that he would like to assign the contract to us.

Don't forget to factor in the cost of floor repairs after that kitchen were to be removed as well as other repairs. 

I can do the 25% down and repairs on my own just need a loan for the building.

Do not bother repairing anything. 

Things that my wife and I do that shows were legit is show our past projects, portfolio, and disclose to the seller our repair plans.

It isn't that big of a deal here, particularly with a lifetime guarantee from the repair company.

They would like to give me first crack at purchasing the property because of my phone call.

If I was in your situation, since you say there are repairs to be made anyway, I would say it's not a bad option to get a hard/private money loan to pay off the arrears and do the repairs, then do a cash out refi in 6-12 months to pull your money back out.

My plan is to occupy the home as I complete repairs.

You certainly would want some sort of slush fund for expensive stuff that could go wrong up front but assuming you budget for it, the rental income should pay for the repairs over time once reserves are built up.