My real estate agent had told me that I was the only person to see the house, because the tenants only allowed showings on Tuesdays, every other week, from 11am to 1pm...

Thank you for allowing me to PM you if I have any questions!

What I suggest is getting a job for a few years that allows you to save some money and improve your credit.

This allows him to walk away and you get what you want.

If updating the interior or exterior will allow you to increase rent and get paid back in "x" number of months, I would do it.On the other hand if you have good solid tenants I wouldn't mess with anything.Since your grandfather had these for 20 years some of the tenants may be due for a rate increase without any improvments

I am an organizer of Brew City REI and a member of Milwaukee REIA, WINGS and soon to be AASEW (Apartment Association of SE WI) and through all of these networks. 

You'll have more options if you a trying to BRRRR since that will allow you to create equity and refinance out a private lender quickly.Small multi family: This would open up the doors to house hacking and allow you to get owner occupied financing which will require much less down when compared to a non-owner occupied.

However I am also thinking maybe I can just find/create a deal that will allow me to pay off my bills.... 

@Kay McLawrence, I'm using an FHA loan that allows you to build a new construction home with 3.5% down.

I am not allowed to pay a referral fee unless they have a real estate license and I'm not sure I'd refer to them if they had a real estate license.