How can one get out of this type of hole? 

Are there any loop holes in the student loan USDA Mortgages!

If this property is not cash flowing in an as is condition then it is not worth the time, expense, nor the headacheIn of all places Detorit you could find a ready cash flowing 12 unit building you can purchase for less than $420,000.00 and even at a rent of $700.00 per unit attain  2% of you monetary outlay per month.

Stay tuned for a follow up post on the monetary value of BP connections! 

There was a small hole in the foyer wall of the 1/2 I went into.

Your dreaming if you think PM's will manage crap holes in dangerous areas for the average PM rate of 10%.The PM's giving special rates such as 8% are typically for A areas where they do not have to do much.C areas have lot's of turnover and many times have damage and multiple attempts at collecting rents.There are special PM companies that deal with the slum areas and are good at that kind of stuff but I have seen them charge 12 to 14% to deal with it.

Obviously the reality is all over the map, but I am finding this to be doable (on paper at least).Now, I am not an expert, but it seems that almost all "Make Money in Real Estate" books, and this website, are geared towards folks that don't have $500k burning a hole in their pockets... so there's not a lot of conversation on this topic...

You don't want to be within that mass of humanity all chasing round holes with square pegs. 

I have not stepped inside the place since I am still early in the process with the owner, but she did describe "holes in the walls" from the tenant. 

I have some garden level apartments that have a cement slab at the bottom of the exterior stairs with a drain hole in them.