Find a good tax advisor, talk to them in-depth about your personal situation and craft a structure that is best for you, not some schmoo on the internet.

'Brooklyn' style growth is pushing west ie coffee shops, art galleries, creatives Upstate Craft Beer Co etc. 

Lots of opinions (galore) but until you study your craft, you won't know who to believe or even listen to. 

Now that they have filed suit against you it would be a very bad idea to do that now.I hope you have kept meticulous records on the repairs.

Once the offer is made based on actuals, then you craft a contract and purchase price with contingencies.  

@Dale Crafts, @Elliot Smith is right about direct mail all over the site.

The property I'm referring to has been meticulously maintained, no mortgage, owner was wealthy and recently passed away in his 80's and now the kids are in charge of selling and want to maximize the sales price on the MLS so it's not a one on one negotiation.It's a 16 unit with average rents at $400/month and market rate is $800-$895.Let's assume all cash purchase so mortgage payment isn't a factor and use 50% rule for simplicity:$400×16×12 = $76,800 gross rents50% rule NOI = $38,400At $1,000,000 asking price the cap rate would be 3.8%If you can easily increase rents to market at $850/unit:$850×16×12 = $163,200 gross rents50% rule NOI = $81,600At $1,000,000 asking price the cap rate would be 8.2%If comps are selling at a 7% cap rate the sales price of this property could sell anywhere between $548,571 using actual NOI and $1,165,714 using market rate NOI.Clearly you shouldn't pay $1,165,714 based on unrealized potential, but it's also clear that the sellers would not entertain $548,571.

The sample motivated seller questionnaire (and explanation paragraphs) on this page will equip you to avoid this common newbie mistake.If you're new to wholesaling or creative real estate investing, you can save yourself a whole lot of mental and financial anguish by asking a series of two or three questions to help you decide whether to deal with a property seller or not.The information you gather from a well crafted motivated seller questionnaire can also help you determine whether the property in question is worth investigating further, regardless of what you find about the urgency of the seller's situation.The section below will take you through a shortened sample form and discuss each section in detail.

This is a tricky issue indeed, @John Bernardo.The best way to have accuracy in this is the same as the best way to shorten your learning curve in real estate investing:  have a great team.Your real estate agent, property manager, lender, and contractors can all be dynamite reference points and guides for building out your Scope of Work and executing it.Prevailing wisdom would say that your agent or PM will be the most valuable first member of your team, and I'd encourage you to find one that is a master at their craft and great to work with.

I would insert "Determination and being meticulous" where you put "Thinking positively".Just my $.02 .