While the best way to improve a DTI ratio is to get more income, the second best way is to pay down the debt.  

My first question is getting a loan with $10k for improvements possible?

Just talk to your accountant about what can be classified as repairs vs improvements, and how best to carry over loss/depreciate the property considering you are currently cash flow negative.

If you think I can improve on the formatting of the post or if you think I am leaving out crucial information, please let me know.

We think with bringing the retail rents to market (which we have solid comparable to support), cap rate could improve to 6.3%..

If it is work being done to the rental unit prior to it being put in service (ie. before you rent it for the first time) or it is a capital improvement (i.e. new front steps), then it must be capitalized and added to the cost base of the property.All questions to ask of your accountant. 

@Tereal WilsonnIf I were in that situation, I  would not want to wait an extra two months, I would want to get to work on my improvements. 

Department of Treasury with usc exceptionState Tax LienLien by USA or Dept of JusticeUS Department of StateOther Federal AgenciesFrequent Superior Foreclosure-Liens:HOA or condo feesCode Enforcement for debris removal or mowingDemolition or Environmental Based LiensState child support lienBoard of County Commissioners for special assessmentsUtility LiensWater/Sewer Delinquency (only in selected states)County (and/or School/Township) for unpaid taxesCity for road improvements, maintenanceHere are some of the judgment and liens that will be wiped off from the property (not the borrower who lost the title) if the lien holders were properly notified and "had the right to bid on the property at the auction":2nd and junior position mortgages, such as home equity loans, etc...Credit Card Judgments recorded after the foreclosing mortgagePersonal Judgments recorded after the foreclosing mortgageMechanic's Liens recorded after the foreclosing mortgage

The lower floor is entirely under height and the fellow that ran his GP practice hadn't done any improvements in decades.

There are a lot of missing variables that could make a big difference in decision making (improvement costs, area/schools, ARV, etc.).