This may play a factor in the strategy on how to handle this situation.It doesn’t seem like there would be reasonable time for the seller to make a proper repair before closing, so best approach would be to request a seller credit.

I would have never guessed that would be a factor.

There are lots of other factors to consider other than the 1% rule. 

Cash flow for lower-tier props can look amazing on paper, but there are a lot of other factors that make real-world returns less impressive.

@Christopher Smith I agree the process is fairly straightforward but the risks of doing it yourself and having the IRS throw out your conclusion and taking on penalties and interest for under reporting income is something to factor into your cost decision.

Aside from property taxes, and analyzing rents in the area what other key factors should I be looking at to establish cap rates and potential profit?

Factors like taxes, expenses, and financing terms will also impact where the breakeven point is.

These issues can be financially devastating if not factored into the repair budget.

Are the conditions of a property a deciding factor even if the location is GREAT?

Agree with @Ned CareyFriends or no friends,  the most important factor is that you all are on the same page, exist strategy can change, so important that you all agree to the same end goal.Also, hat is everyone bring to the table?