I think that some SEO folks get too obsessed with their pursuit of backlinks above all else and their efforts become spammy (hence the penalization like you mentioned).

Try to learn as much as you can and surround yourself with wise people to minimize mistakes, but ultimately you just have to put in the time and effort and do things and learn it.

I'm just doing this now so I don't have any personal success with the strategy but he told me he's gotten a handful of deals that way over the years so doesn't hurt to try being that it takes minimal time/effort/money. 

Newark is attempting similar efforts to turn the city around and it has an even hotter market, but, cleaning up newark will take a bit longer as its a much larger city. 

It doesn't really require much in effort or time to clear up.

I don't think there's any substitute for boots to the concrete and local knowledge.One of my low-income farm areas was recently targeted by the police and zoning board for massive enforcement efforts, i.e. more patrols and demolition of houses.

That can't be good for your marketing efforts.

I'm sure we spent way too much time and effort, but I wanted to mollify the guy so he will show mercy.What could we have done differently?

It's also about not spending time, effort and money on a property you can't move!

You already have some experience and with additional effort, will quickly climb the REI ladder to its pinnacle.