Her reply "I have relatives who live in far worse".It was a huge old home that must have been a classic in its heyday. 

It is kind of a classic trigger for bubble collapse.

The classic test for an investment contract : a) an investment of money, b) in a common enterprise, c) with an expectation of profits, d) based solely on the efforts of the promoter. 

You making a classic mistake as an investor...becoming emotionally involved.

Seems like a classic mom/pop story trying to to retire.The property has 33 units plus an effeciency apartment that used to be the laundry mat. 28 units are rented, there are no property owned trailers.

This sounds like a classic case of analysis paralysis, and remember: There is a cost associated with doing nothing.

The heir you contacted sounds like a classic opportunistic grifter.

With that being said if you're looking to sell it as a rental or hold it as a rental the price per foot or the "classic comps" are less important.

This is were others are suggesting starting a little smaller were you stand a better chance at capital raise and financing.. most of those I know in the Multi game started in a progression.One gal I know in Oregon  they started with a 4 plex and in about 15 years through a series of sales and 1031's ended up with a 54 unit.. they made a classic mistake and sold it thinking C class mid west was better cash flow.. they  sold and bought a 300 unit in the mid west and guess were they had to move.. they damn near lost it.. finally sold it and came back to ORegon down sized and are happy..Now if you have your warm market IE family and friends that will put up equity and probably help you with loans.. that's different but to go out into the open market .. boy that's tough.. and I think a does of reality instead of RA RA you can do .. might be a good thing for you.

I've been doing my due diligence when it comes to my financial education, read nearly all of the BiggerPockets books, the classics, been following webinars, networking with local investors, talking with local property managers, ect.