I'd tell the seller that based on the true condition of the  financials you'd typically be looking for a 15k price reduction to take it with a seriously delinquent tenant.

Cracked foundations are scary but you get a huge reduction a lot of times which can turn into massive profits down the road. 

. - FYI - Annual debt service is calculated based on an asking price of $57,529.18 w/ 75% LTV. 30 year term. 4.625% interest rate which comes to $2,661.96 annual debt serviceMonthly Rent $750.00Vacancy Allowance @ 10%Expected Annual Gross Income $8,100.00 Estimated Annual Operating Expenses Insurance $400.00 Property Taxes $2,861.00 Property Management (10%) $810.00 Repair/Maintenance (8%) $648.00 Total Annual Expenses $4,719.00 Net Income $3,381.00 Annual Debt Service Mtg #1 $2,661.96 Annual Net Cash Flow $719.04 Loan Principal Reduction $541.00 Combined Return $1,260.04 I think the property does well w/ 75% LTV on the purchase price. 

Hey BP!So, I just received an inspection report.  It's for a small multifamily.  The numbers work fine... currently at 2.79% rent to price ratio...not wonderful, but meets my criteria.  So my question is... got the re...

If setbacks require me to keep the parcel, I'll follow your advice and try to get a reduction of liability.Thanks.

The reduction in management hours and ROI on the expense for a facility this size wouldn't be there. 

The interest only options are fewer these days, but that cap rate multiplier with no payment reduction as the balance is paid down would be the deal breaker for me.

The recent oil price reductions from $140 per barrel to around $41 per barrell has slowed things some, but Natural gas wells are the big thing on the west side of Fort Worth.Population growth in the Metroplex has been #1 in the US for the past three years running (major metro cities compared only).What type of investments will you be looking to buy, SFR's, duplelex-4-plex, apartments, retail strip, etc?

I was looking at the deal as good based on the starting offer and that any reduction would only make the deal better.

Those don't come along very often, and when they do, they are less desirable properties-- if they are something that anyone wants to own, they will sell for a slight reduction in price.