There was also a hole in the floor that animals had been coming in, and the house was infested with thousands of fleas.

Prep is key - you must use primer and sand between coats and all the other stuff you want to skip or it will peel and look awful.

You're also going to need to repair/replace gel coat and carpet every few years.Aramark runs the concessions at Lake Powell, Lake Mead, etc.  

At our 12 plex, we are taking rents from 400/mo to 800/mo but that is an entirely different animal.

It is a different animal than delayed financing.Delayed financing, by itself, is not ideal when the property requires any significant rehab because it forces you to put in a lot more cash out of pocket.  

We believe it's a scam because he claimed $1,500 in clothes stolen, among them a $1,000 mink coat, and he's not the type to wear mink coats.Later on, had another tenant, and by then I required renters insurance.

And could be a reason to sell.The other thing to think about (speaking from experience) is that 1 bedroom/1 bath places are a little bit of a unique animal. 

NYC tends to be a whole different animal then...well...anywhere else including the rest of NY State. 

You need to either turn that option off or find a way to mitigate the risk of them turning it into the Animal House.

You could hold the property but could only take up to 75% LTV from lenders versus 1031 you can take all equity to buy something else.I won't sugar coat it 1031's are hard to do.