Because the condition of the building has deteriorated requiring substantial renovation she decided to stop renting it out after the last tenant moved 2-3 years ago.

But you can buy or build A class and let it deteriorate to eventually become a D.

WARNING: if you do not prepare for this, you can enter a death spiral: deteriorating properties lead to lower rents, worse tenants, more wear and tear, even less cash flow to fund repairs and ultimately erode asset value.I do not mean to rain on your parade, hopefully, this is a helpful long term perspective. 

Properties like this have a tendency to escalate in their deterioration and can eventually lead to arson; which we certainly want to avoid.

However, if lead-paint is in "Deteriorated" condition, remediation will be necessary.

The property had sat vacant and neglected since then, rapidly deteriorating and becoming an eyesore to the neighborhood.  

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California could cost you a minimum tax of $800 every year.

However if it is rough and deteriorating/cracking then you might want to budget a high amount for removing it safely (which is not cheap) then residing the entire property.I'd try to negotiate the price down either way!

Investment Info:Single-family residence in Tempe AZ with old deteriorating cast iron sewer pipe. 

You'll also want to ensure you have a good property manager to look after the upkeep of the property if you are not there to notice anything deteriorating or which may need attention.Creating an LLC in California could cost you a minimum tax of $800 every year.