I am happy to discuss further...feel free to reach out privately.  

Gentrification is a powerful thing and having seen it up front, I wouldn't bet against it. 

With the current tax proposals, if you purchased a property with a large loan the interest may not all be deductible however renting is one of the worst things you can do from a tax perspective.Given the information you have posted and past experience I suspect that your best bet would be to structure a 1031 exchange on your property with the greatest appreciation, exchange it for a property that you want to live in, and move in after a period of time. 

The bet offer we can find through a bank is 30 years at 4% interest with 25% down.

To get a visual, is a basement dirt floor, no entry, but private; 1st floor kitchen & living room, however they just threw a stove & frig, in a room, so, I would have to put in an actual kitchen; 3rd floor 2 bedrooms & full bath (its nasty and needs a full gut), 4th Floor is an attic that is like a full floor so it's a nice perk to store stuff; but the condition is beyond what I can describe...it's like you owned a building for 50 years and you did no renovation EVER and that's the condition. 

That could be a heloc/private loan or a short term construction loan then you refinance at the end, or some  type of construction to permanent financing loan. 

My company will go down to a 580 min. credit score on FHA.I bet with some homework, you can finance it now and then figure out how to do the rehab?

She didn’t tell me that she represents them (I know for sure her agency had the listing before it was canceled), but the way she worded everything in discussing the property, I would bet she is their agent now.

BUT, the positive would be:+ Catagory A neighborhood with stable renters+ Betting on property value will increase over 10+ yr given the neighborhood+ Turnkey rental, leases in place till 2018Would these positives balance out the lower CAP rate?

What about a private loan?