He is pretty good at managing those kinds of properties and we are buy and hold so we can weather what might happen in the next 5 to 10 years.   

With Subject To, you have less risk and weather the storms.

We lost most of our builders and developers in the crash - we're actually in a housing shortage now.The guy you saw could have been an investor, a "bird-dog", a scout for roofing companies, yard treatment companies, handyman companies, ... almost anything, especially if you've had rough / damaging weather lately.

Can yo weather the storm and still come out with your head above water at the end?

Also, you can see on the tiles above the big hole, there are many drilled holes from various pedestal sink installed and changed out over the years.My original plan was to just patch the hole with moisture resistant sheetrock, then install a new sink cabinet in front of the hole, and no one will ever see the patch. 

Both of us were resistant to it, so she said, why don't I put the money down, be a 50% silent partner, you guys collect the rent, live in and manage the place.

I think in some ways the sheer shock of the reality fuels the resistance. 

Sorry, couldn't resist.

I treated all walls halfway up with a crystalline concrete waterproofing solution, sealed up cracks and holes with hydraulic cement, and decided on metal studs throughout the unit with rock wool insulation in walls and ceiling to resist moisture and insects.

Depending on what year of the NEC the City follows it could mean full AFCI/GFCI and tamper resistant outlets.