That's terrific - except for the fact that the OP was asking about just such a "low class" market (Troy), which frankly is similar to the majority of real estate markets in NYS north of the Tappan Zee bridge. 

Would you live under a bridge?

If you have existing properties with available equity, you could do the same thing with a bridge loan.

Lots of changes coming to Nashville as there are discussions of mass transit and redevelopment to connect areas to downtown via bridges.

It’s never a good time to invest in the Bay Area- very expensive, very competitive It’s always a good time to invest in the Bay Area- phenomenal long term returnsYour challenge, should you choose to accept it, is to navigate and bridge this dichotomy————-WordsOfWit

You can also check out the South Shore REIA right over the bridge on the Cape.  

You don't want to burn any bridges by miscommunications or not properly addressing resolution paths, buy-outs, exits, etc. in a legal manner on paper and signed by parties.

This is a good deal for the bank because when they have a bad asset on thier books it really screws them.Next I would look to raise private money for the rehab and ask the second bank to allow that money from you and a rehab estimate to bridge that gap between where the finaincing is now and where they need it to be to close the deal.Option 3 is a bit more problematic. 

Except you would either have to come up with the funds or find a lender willing to bridge the equity in the property for sale.

Am an investor-friendly Real Estate agent with an office on the Columbia River just across the bridge from Portland, Oregon.