You may have to foreclose and kick someone out of their houseThat the city will condemn the property due to its unsanitary condition that the borrower was living in, and won't release it back to you as the rightful owner until you jump through a million hoops and needlessly spend an exorbitant amount of money on their "city approved" contractors. 

If you offer to buy it, make it conditional on the unit with the problem tenant being vacant.

If you have a real estate agent, I would ask them for comps to determine where you need to get to condition wise in order to justify a refinance to get your cash out. 

You can get a 3rd party to look over the house and give you a report about the condition of your property.

Roof condition is moderate.

and will that help for all terms and conditions?

1% rule is definitely challenging to find in this market and depends on a lot of variables (price range, condition, condo vs single family, neighborhood, town, etc).Going slightly outside of Charlotte (Concord, Gatonia, etc) like @Joshua Davis did.

They might be negotiating with quick close conditions and needing cash buyers.

For example: you install a air conditioning unit in 2009 and depreciate over 27.5 years but then it fails 10 years later in 2019.

I was hesitant due to the conditions and the existing tenets.