People in the area can't qualify for a loan, the neighborhood itself isn't desirable and he has sentimental value tied to the houses. 

I want outside perspective since I do have a sentimental value on it with many years of sweat into the place.

Community sentiment still has some negative thoughts, which translates to good buys for those with vision.

I vividly recall sentiment in 1999 and 2006.

We are getting the house for a good price, it has a lot of sentimental value as well as we have rented it for 6 years, prior to that my wife's parents had rented it for over 22 years (I know) but we understand the value has to make sense as well, similar houses in the same block have been sold for much more, same layout and footprint.

I agree with many of your sentiments about the tenants' responsibility to pay. 

After reading a lot of posts on BP though, I have notcied a fair amount negative sentiment towards traditional wholesaling, as it is not as profitable as rehabbing and does not create passive income like owning rental units.

Yes I know, general sentiment is don't invest in condos.

Wheatie / Greg, thanks for your insights, some very valid points.Greg, I agree with your sentiment, today 10 yr. treasury is up to 4.10, highest we have seen in a long time.

Since it's FSBO by a relative of the owner, I would try the tactic of playing off of the personal connection/sentimentality by letting him know you think it's a great house that's worth "saving" but it's going to take a lot of work and money to do that.