Neglecting the possibility of a complete collapse of the US, because that really would apply to most assets most investors might put their money in, you WILL get exactly that return and you WILL get your principal back.  

If the deal collapses and I would lose everything, I'm out.

2008 was a housing bubble induced recession, so yes the housing prices collapsed (biggest drop since the Great Depression of 1930s).

The walls are riddled with cracks and parts of the floors and roof have collapsed.

When is the collapse coming?

Keep in mind, everyone has been waiting for the collapse of the real estate market for at least the last 5-7 years.

And since it is a federal emergency the SBA is giving low/no cost loans to businesses owners, home owners and landlords check it out https://disasterloan.sba.gov/e...the govt wont let the economy collapse - at least not without trying to bail it out also it looks like China is coming out of it so we will too.

Returns have collapsed.  

It was uninhabitable when I bought it (leaking roof, collapsing chimney, no functional baths or kitchen, no laundry facility, illegally subdivided basement room, wiring, plumbing issues, cockroaches, trash filled yard, etc.   

If if is major like collapsed staircase, broken windows or anything the effect the Health & Safety of tenants then fix ASAPTenants not taking care of the unit and I’m responsible = Install cheap stuff like I do Just had 2 section 8 re-inspections and there is a laundry list of items to fix = My section 8 units were all fully rehabbed.