Once the stuff dries it's not volatile.

My thought is they probably had a hair brained idea to make money off of their 'vacation rental' but they needed a leased tenant to satisfy their mortgage company.

The price has dropped once already primarily due to some pretty substantial deferred maintenance that the seller doesn't want to deal with (new roof, retaining wall, some dry rot).Looking at COCROI/Cap Rate and other numbers, the place looks to cash flow handsomely already – around 1k/mo with existing tenants at existing rates.

NYC is saturated with investors and the market has dried out.

And the only reasons I haven't pulled out my hair and quit is because I don't have much hair left and because I sometimes get a flurry of acceptance activity like I mentioned in my blog, telling me that my method still has merit.  

Water is corrosive, air can be too, paint will dry in there and be a nightmare.Just my .02

Your also talking about a situation where your going to talk to an investor which is fine - now if it was a little old white hair ladies house that just burnt down that your going to try and profit from the situation it comes down to if it were mutually helping her vs taking advantage.

A potential difficulty is moisture accumulation below the surface of an older foam roofs so make sure it is dry 1st.  

Sounds like trying to use 'dry' funds to close a simultaneous closing.If so, not permitted (any more) as far I can tell.Assignments are though.

Here's a photo of some typical dry wall damage.