We have record employment, all of our retail is booming, housing is still selling.

If it’s in California they will chase you for state income tax if you ever sell your new property, even if you exchange out of state. 

Can I just sell it off to a collection agency.

My advice would be fix the dog, and sell the puppies or adopt them out to a good home. 

If so, you can't really pivot to short-term rentals there and have to capitalize on the inn vibe and in-house services.My major question is why is the current owner, who bought it after it sat vacant for twenty years, looking to sell you the problem they can't fix?

If it's not selling, you need to lower the price.

Condos are their own niche so make sure your agent is experienced with buying/selling condos in your market3.

Talk to agents in your area that sell a lot of investment properties.

People selling dreams really, not so much anything usable. 

A buddy has a 5 unit building he needs to sell at 475k.