Is the trend in the area declining?

We are VERY early in our process, as I was informed of this whole situation about an hour ago and have been scouring the internet since just gathering all my peanuts to see what we really have here.Based on a quick zillow comp, and my knowledge of the particular area, I am definitely leaning towards the current owner being upside down to the tune of maybe 10-20K as the area has declined a bit more since the 2008 purchase.

Many times landlords have ran the properties for years and they are TIRED.Based on all the listings I have had in Multifamily and the stories they tell me I would pay the fee for a great property manager.The benefit to owning a 50 unit or greater is usually you can land a 5% property management fee and the company will have a system in place versus a manager doing 1 house who is "winging it".Saturation rate for the area (competition) for your properties product mix and amenities will be key as well as proximity to jobs,transit,restaurants, medical facilities,etc.I don't worry that the property is vacant.Even in high crime areas it's all relative to price.I would not recommend buying in high crime areas for a novice.I have investor groups who do nothing but this and buy really cheap.Eventually these nodes will be redeveloped and cleaned out if you buy right but you have to know the city plans and intricate workings of the area.Don't listen to a seller telling you when occupied it rented for 600 a unit.Base your numbers off of what the market will be doing after your rehab.If rents were at 600 a unit but based on data have declined 1 percent a month and rents now are at 480 then when rehabbed in another 4 months your lease up might be at 460.Look at the big apartments to see what kind of specials and concessions they are running in the local area to lease up.We could all go on forever with suggestions.You really need to work with someone who has intimate knowledge of the area you want to invest in.When doing vacant or development deals the biggest mistake I see developers and investors make is to do rosy projections that 80% of the time do not go as planned.Plan for the worst but hope for the best.

Have a local investor-friendly realtor give you an after-repaired value, then deduct at least 10% - maybe more - from that, because I believe housing prices in Buffalo are still declining.

These types of banks are a little more susceptible to a strong marketing pitch, with decision in house.At a minimum, you'll make alot of financial contacts that could be useful in the future, and will learn alot in the process.I'm also curious why your ratios are high if you qualified for the loan on your primary initially, and assuming your income hasn't declined.

I can say the number one mistake made is basing a rehab off of the top of the market pricing.In a declining market you want the best product in the bottom 50% of pricing for the immediate area.This shows a great product at a great value to buyers.If you overprice and chase the market down you will stay behind the pricing curve and never sell.The name of the game is sell it quick for a decent profit and move on to the next one and not get STUCK.

And also since he declined the $114K offer, you guys think that I should of attempted to lease option the deal?

Overall #'s:Contacted: 17 timesNo returned calls/emails:  8Showings Scheduled: 8No Shows: 4Applications: 1ZillowContacted by 6 people3 - They didn't return my calls when I told them requirements3 Showings 1 applied and I declined due to terrible credit/payment history & 45 minutes late to showingWaiting to hear back from one couple that saw it late last night1 showing scheduledTruliaContacted by 7 people5 - Out of state phone numbers and don't respond to my emails or phone #'s1 showing, but didn't realize after me stating it 3 times that no pets were allowed1 no return call inCraigslistContacted by 43 no shows1 showing scheduled for today - not expecting him to show up. 

“C” Class properties are in older, declining, or stable neighborhoods, are not the most desirable areas, are typically older properties, built 30+ years ago with much fewer amenities, if any.

I may have to spend some $ on capex to get it sold, 3. as long as it is rented, I'm building equity as my principal balance declines, and 4. frankly, I don't really have a good plan for what to do with the proceeds yet.