You need to have a repair estimate in mind, remind them that they won't be paying closing costs, repairs, etc.Educating the seller goes a long way in negotiation, but that can only work if they are sufficiently motivated.

The only issue is that her income alone is probably not sufficient, but mine definitely is. 

If your follow through applicants don't have sufficient income or credit, then that's a sign to look at your price.  

The new owner should get all those for when the tenant leaves, you will have sufficient coverage for any damages and what not.

@Jon G.I think the market is sufficiently hott right now in NYC, I would definitely let go of it, especially with these low interest rates.

Above information which you would provide to the bank in a loan application would be sufficient for them to decide under what conditions they would finance your project.

Negative cashflows on rentals in Los Angeles is very common which by itself is sufficient cause to drive income driven investors elsewhere. 

If a property has been marketed to the public for a sufficient period of time, meets market conditions, what you paid IS the market value. 

Call them if it's not sufficient and have them come back or do more sanding but in generally they should know.

Right outside this will be a good sized game room with a fireplace, sitting area and sufficient space for pool table or other games.