You might not make much giving most upside to them to deal with all of the issues but you do not want anymore losses incurred.If the total amount to fix up the property is more than the value of the place you might not want to do anything to it.It sounds like you fell in love with an idea of restoring a building instead of the reality of the location.

Hi, @Toby Rachel   I've been a fire restoration contractor for 6 years here in the LA area, estimating fire repair using Xactimate and then restoring the homes.  

@Carlos Rodrigues you stop from foreclosure by restoring the back due interest/late fee's of 15k  which removes the current seller's mortgage from default status. 

;)I own a 98 year old craftsman on the bluff in the historic district of North Everett, and hope to invest in my own neighborhood to help preserve and restore the areas east of me.

I would limit your deductions to unpaid rent, making necessary repairs to restore the property back to move in condition (patching holes in walls, cleaning stained carpets, etc (provide receipts for labor and materials),and cost to deep clean the unit.

We own a drain cleaning & water restoration company so he has been in thousands of area homes, demo'd many basements, & coordinated the beginning stages of remodels.

The city even ordered the owner to do an impossible, irrational thing -- to restore the one-bedroom units to their original two-bedroom configuration -- which would have required ripping out walls, kitchens, and bathrooms, and displacing all the tenants, at a huge cost that would actually reduce the future rental income.

He has 30 years experience on the MO side, and came to OKC in 2008.Here in OKC, we do a balance (as best we can) of wholesaling, rentals, lease-purchases, rehabs that slightly raise the bar for quality in their neighborhoods, as well as full historical restorations (my favorite as someone with a history degree).Generally, OKC was not significantly hit by the housing crisis.

The surrounding homes are well into the 6's, but the duplex has had little restoration and is currently occupied by handicapped month to month renters. 

I don't know if a multifamily dwelling would qualify because the tenants are not stakeholders and usually move on rather than invest in the community.If you purchase a historic building, you can get a grant to restore it but you are limited in what you can do to it and with it.