He has been working on getting it refinanced to lower the monthly bill and has made little improvements here and there.

Any reason not to offer 100k or lower, in light of the work involved?

@Jimmy Solano Another thing you might want to consider:Once you add your estimates for the missing expenses your NOI will be lower.

Lower financial risk if we had a longer vacancy or costly repairs because the rental expenses are lower. 

I never would have thought about someone stealing it to use for a lower bill, must say that's creative.

Also if you run other businesses, a different structure might be more helpful.Currently, seeing that the corporate tax rate was lowered significantly, depending on how much profit you want to reinvest in the business, an actual corporation may have some benefits as well.I'll say that generally an S-Corp would be the way to go, but there may be situations that make a corporation tempting.Be sure to work with a CPA that knows your specific situation.

So are you saying that its a good rule of thumb to compare the 50% rule cash-flow to the calculated cash-flow, and if the calculated cashflow is lower than the 50% rule cashflow then it's a good indicator of the property?

It really depends on your goals and ideas about "good numbers" but maybe starting with a criteria of having that average sale price in zip code to be no lower than $75,000.I'm just spitballing an ideaThis is going to be a shameless plug, but if you used a realtor you could get info and guidance pretty easily.

I know there are a few pockets of higher crime within the area, as is to be expected in any lower value and rent area.

Disposition value means what a motivated seller would accept (lower price).