Based on the market and the improvements I would bet the property has increased significantly in value. 

A few key highlights are:-A key indicator to determine the best cities to invest in and where to expect the most growth is the recovery of the business services jobs, (services related to operating a business like accountants, lawyers, cleaning jobs, IT)- The faster jobs in business services pick up, the more likely a market will be a good long-term bet for real estate investors-San Antonio made the list for one of the top cities for business services job growth!

Therefore, markets with higher appreciation expectations typically start with poor cash flow (think coastal So Cal, NYC, etc.).  

I think your best bet will be to shop, shop, shop and see if you can find someone who has an opening.

My best bet is to find a distressed property in a good area and renovate it.

Next bet for you would be partnering with someone (you contribute to the DP) who does have some of basic qualifications a lender looks for or a co-signer.

I’m not trying to get into debt Vs leverage here as I myself leverage but it could be a “safe bet.”

Why do you want need a bathroom in a basement with no ceiling, door and poor lighting.  

I bet a lot if investors would like to have your problems.While it is nice to reduce taxes, paying taxes means you’re making money.Investing has to take our personality and risk tolerance into consideration.

Renting in this market would be a poor choice.