Obviously you aren't putting stainless/granite in the lower end rentals, but still, even assuming good mechanicals, a new kitchen, bath, misc. repairs, still has to be expensive, especially if there is lead paint to contend with.

Is there any way to creatively modify the space keeping the existing mechanical layout?

Search on bigger pockets on the mechanics of lease/option contracts, subject to's and owner finance. 

VA inspections are more geared toward the mechanicals than the bad wallpaper.  

I also have an LLC and understand the mechanics.

This reminds me of a tv commercial years ago about a mechanic saying you can pay me now (for regular maintenance) or you can pay me later!

Depends on the Agent....some less trustworthy agents have a hard time working in an intermediary capacity.Next have the property inspected....structure, mechanical and pest.

Namon is asking about mechanics of putting a deal together.

Each state has it's own laws regarding mechanics liens, and dealing with "fraudulent liens".  

Worst case, its a couple k for an education and I'll still emerge knowing more about the mechanics of deals.