Even worse, some of the "helpful" tips provided are just plain WRONG. 

I'm in the process of fixing our current property management and DIY, we are put of state so my plan is to create a spread sheet with all kinds of vendors to have easily at hand when something goes wrong, like a list of 10 electricians, 10 plumbers, 10 tretrimmer/landscaping companies etc. what do you think of this approach and what vendors is a good idea to put into my spreadsheets?

Play the game we have -not the game we should have -you actually want to be wrong sometimes -make money🙂🙂

The property under contract sounds like a commercial loan situation, but I could be wrong.

There is nothing wrong with either approach (full rehab vs targeted based on immediate need), but it is important to know which level of rehab has been done on a unit you are considering purchasing. 

It seems like every day something is going wrong!

Am I thinking about this wrong or does it make sense to take this area and turn it into another 300-400 sqft of indoor livable space?

Fear of the unknown, fear of getting it wrong, fear of losing money, etc. 

Be sure to ask though I might have the wrong product or there might be a better one.

As mentioned the DFW area is not a place you can really go to terribly wrong with appreciation...especially in the areas you mentioned.