Us New Yorkers are grateful to live in a great city...however, it can be a difficult city to invest in real estate.

Now, at end of job, the lender refused to reimbursed me the money I paid the new contractor, They are considering any amount in escrow as "unsused fund", and want to apply it to the mortgage balance. 

Unless we take money out of the TSP we don't have enough for a traditional down payment, which makes investing out of state difficult.

I think you have a very viable idea in a very difficult market-does not mean it can't be done.

It is very difficult to find "deals" in this market now.

The walls are block and very difficult to install anything property so I don't want the renters trying to put up anything themselves. 

Getting someone thru closing is difficult. 

Evidently the buyer's lender required him to pay off his credit card balance in order to be approved for the loan, and the buyer refused/wasn't able to.The asking price is $128,000, but I was thinking of utilizing a BP calculator report (shown here) in an offer to show what it takes to achieve my coveted 7% cap rate and 10% COCROI.

Evidently the buyer's lender required him to pay off his credit card balance in order to be approved for the loan, and the buyer refused/wasn't able to. 

Outstanding balance is 470k.