Invest the "AS-IS" 21 units building

[Mike Zhou]

My partner and I are in the process of acquiring a not so well maintained ( Pop had it for 20+ yrs) in a small town. The seller would provide an "adhesion contract" to sell the building for 85K "AS-IS", ARV is difficult to calculate since it is no COMPS in 30 miles. The occupancy is around 60% with 6 units need to total rehab. current NOI is around 3K/m. Rent is bit below market due to the condition. I have read through the "Due Diligence" book, with the deal we negotiated, seller agrees only to do the "AS-IS, Whereis" contract. What do you guys/gals think ?

[Chase Louderback]

@Mike Zhou You may want to do another test ad with it in the local paper.  If you still are only getting 4-5 responses a week, I personally wouldn't do the deal.  The demand just isn't there and you many options to choose from in terms of tenants.  Also, this will effect your ability to not only rent the property, but push rents in the future.  

As @Scott Mac said, you should also check with the police as they may be able to give you more insight on the property.

Finally, what the the employment and population like in this area? It sounds very rural.