This is the only thing holding me back from making an offer on this really good deal.

I assumed this would be the case because the rest of what California has to offer kind of sucks.

PM made a couple attempts to collect and then offered to cover the damage because toilet replacements are not that costly and continuing to pursue the damages did not make sense for them.Airbnb is supposed to cover guest damage but if they refuse to pay for guest damage their insurance has reduced value and cannot be relied upon. 

Jonathan Having worked most of those markets (Detroit included), I'd say most all of them will offer investors a very similar return.

In my opinion, making an offer site unseen is not a risk.

Negotiating Price: What’s a reasonable offer given the current income and potential for more?

Quote from @Rick Im: Does anyone know of a lender that offers second mortgages on rental properties?

He may realize the offer he had was inline with the value.

Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.

The seller is offering seller financing at 2% interest with a 9-year balloon.