The bedrooms need the carpet removed and the hardwoods redone allong with a fresh coat of pain.Also im wondering if i could put a room in the basement and rent out the three bedrooms.

Traditional Mortgage won't work on this house, unfortunately, as it needs a new roof and there had been some water damage in one room in the house, necessitating removal of drywall (it was caught quickly and there is no mold or mildew.

The building has many open violations, mostly due to the abandoned store fronts and to water leaking into tenants apartments from the roof. 

The only catch is the HOA is $260 a month plus $65 hazard insurance plus $200 cap for utilities water and lights, internet comes in HOA dues.

We like to put 6 feet of ice and water shield on our roofs instead of the typical 3 feet when we install a new roof for this reason.  

I walked the outside of the outdated property and snapped some pics, rolled some numbers in my head around:Mid-range ARV around 400knew doors and windows throughout, 15k including entries for good stuff (I know that's high, better to err on the side of caution)fresh paint in/out at $5 per sf for good stuff, call it 9kflooring throughout, 6.2k at $3.50 a sf2 bathrooms, 15k kitchen 20k including appliancesso about 55-60, plus some extra for unforseen and pool, so 65-70k, leaving me an offer of 200-230ishI'm sitting in this driveway for a solid 45 minutes taking notes, running numbers, pulling title info & last sale price/date (Chicago Title mobile app), etc.  

Any suggestion on water properties vs not on water?

That said, with the limited information you've given, there is still probably some meat on the bone.I can't do accurate math for you because a lot of it is very case by case, but major expenditures you should add in are vacancy, roof, HVAC, property management, and any concessions you give tenants such as free water, cable, yard maintenance, etc.

Not sit around and paint with water colors or join your local golf course, but then again, you can if you want. 

. :) I live so frugally that my wife and I can save a fresh 20% down payment on a home every 9 or so months...Lack of capital isn't really a thing if you work full-time and live frugally.