I am excited about the potential income but, I don't want to walk into something that is too good to be true!  

The flooring is only when you walk in front door.

So I would have to pretty much purchase for his asking price of 45k (or make a down payment in excess of 20k) so he can walk away with some money to fund the next business venture.

I thanked him for his time and told my client that we needed to walk away from this whack job and find another place.We submitted an application for his second choice, which went through without incident.

Day: fairly lively since its weekend, kids are playing outside, saw a few grown men shirtless, walking around.

When she got the keys she said she was unhappy with the place and we did a walk through next morning.

Walk before you run.

I have run through the numbers and i will be cashflowing on the property for the purchase prices we have agreed to ($81,500 at about $900 per month in rent).I have walked through the complex and spoken to neighbors who all seemed happy with the townhouse community (one even said it was his favorite place).  

The reason behind this is because the house needs fixed up---new carpet, water heater,all new flooring throughout and the bathroom needs renovation as well. the gutters are falling off and the fascia boards are rotting...with that said I can buy it for what he owes the bank with 2k additional for him to walk away happy.

So thank you @Brandon Turner @Ben Leybovich @Michael Blank and others for your great insight.I did what I was told and established a relationship with a commercial broker who in turn sent me an off market listing that I believe is a great value add property.This is a 8 unit MFR in an "A CLASS" neighborhood located in Bklyn NY within 2-10min walking distance to any and all amenities, (Barclay's Center, Malls, Shopping center, Banks, Restaurants, Museum, Parks etc.)All 8 units are 4 rooms (2bedrooms) including 1 duplex apt.....  5 units are rent stabilized and 3 units are free market including Duplex, all of which are receiving way less than market rents.Typical Market rents for 2 bedrooms in this area are 3k+/mth, also the typical vacancy rates for this area are @ 2%-3.5% (Bklyn market analysis).