I had one "training house" that was never leased, simply a property used for instruction, techniques of painting, caulking, cleaning, HVAC maintenance, plumbing maintenance, electric checks that homeowners could do, some didn't know how to mow a yard, throwing the grass to the center of a yard before it gets mowed (going the wrong way).

Please keep safe and healthy first! 

And here, you are in a safe place.

A safe way to handle this, is to attempt a loan work out first and try to get it re-performing. 

I used to kid new investors to be sure to get their investors license to be safe, now days with the idiots we have in office that may just become a reality some day but the knowledge base is a good thing to have.

And you all make some very good pointsBut from what I see with my eyes is that when I drove around Newark and Irvington NJ the other day i was in disbelief mainly because there were some areas that seemed like a location where they shot an episode of the wire and meanwhile 3 blocks away developers are building those ticky tacky 3 story apartment complexes.....Probably gated with a key code and off street parking to keep tenants safe but still not the best thing for the little guys trying to get into the game. 

I know I'm likely going to get a lot of play it safe answers, but I want to get some other opinions. 

Crime is high and many areas are not safe, its truly a depressed area. 

Now if your estimate repair is 65,100 (I would just round it up to next thousand to be on the safe side) so I would go with 66kso 217k subtract 66k should be 151k...your max offer you should be 151k.

But yes Cashflow is the goal I also understand it has to be in a blue collar area with growth potential and a safe area to live and do business.