The letter stated it was a cash deal up to $300,000 which is why the decision to close in 15 days was implemented.

That kind backs out to 12-15% cash on cash return. 

Let's of NYC investors look at other cities in NY, Rochester, Buffalo, etc... they can drive to them to see them, and they know the state well enough to feel comfortable.Most of the rust belt cities in NY offer cash flow as well. 

Lenders want to see income, not negative cash flow, even if the loss is just on paper from depreciation.

They only accept cash.

@Matt Tortora For cash flow? 

the majority of even my national users are looking to keep cash in reserve and as such are looking to landlords to finance that TIA as additional rent at a return premium and then that extra rent bakes off in whatever term is negotiated. 

For example, say it were a 2bd/1ba property, I would just list it for 1 nurse to stay and I would hit my cash flow goal.

Buying the land right (at a good price) will determine the end result of cash flow (if building the home to keep) especially as you factor in Holding costs and Builder fees. 

Apparently they take preferred interest in your company or have you sign a UCC cash flow agreement.