Those commercial units are definitely a league up from the regular residential stuff where all the dentists are lawyers that are looking to increase their short term deductions are looking to overpay for property in order to park their income. 

No cement perimeter, no piers.

$/SF in that area.I talked with my agent and she said its not possible to see the house yet because there isn't a key yet, so i decided to put down an offer for 85K which was the listing price as well.The owner accepted the house and now we are waiting for the bank's response. but. 2 days ago i was able finally to go see the house, and for my disappointment the house needs way more work then what i hoped for... it needs new kitchen cabinets plus appliances, new flooring all over the house, new toilets baths and sinks, and some major work at the back yard including replacing a broken spa (or filling the hole in cement).So, my question is, from your experience: Would i be able to lower the price if and after the bank accepts my offer and how do i do it?

Higher rates just helps cement that.

Outside, the cinder blocks are covered by 4x8 sheets of fiber cement siding (HardiePlank), so it doesn't look too bad.I've been renting it out for 1.5 years but lived in it before that.

After you've seen some of the worst REOs (think: cement poured in all the drains, all the freakin copper ripped on, no evidence of any HVAC equipment, etc.) the worn-out houses you see from mom & pop sellers will look like GOLD.

You just need to make sure that there are no cracked shingles and if there are you should be replacing them ASAP with cement siding to match

New roof $12,000+ New kitchen, bathrooms, ceilings, flooring, windows, doors, resurface the back yard cement & pool surround, interior & exterior paint, etc.  

Eventually, I  want to pour a cement slab to park my camper.  

Lets call that the :( side.2) And there is the happy side... passive income (syndications, passive partnerships ie medical/dentist offices) and passive losses (depreciation, bonus depreciation via cost segregations common in syndications).