It will irritate you when your paying several hundred each month in utilities.

Larger concern is the toxic materials are released and can be absorbed through your lungs, eyes or skin.

Your minimum statutory skin in the game is 3.5%, $6948 in this case.For the rest...Bump sales price, ask for seller credit.Bump interest rate, ask for lender credit. 

Make sure you're only irritating the landlord, not the local authorities, if you feel you must go that route.I'd try explaining to the property manager about your situation and seeing if you can early terminate or sublet it to a long term tenant as the first option, though.

I'm betting you could stack historic credits, LIHTCs, possibly a TIF or other local financing, and either the FHA or a commercial note to get you in with little or no skin in the game.

Everyone is going to keep say "you need some skin in the game".

Note that I do not put a lot of time into due diligence until the "contract to hold" meeting, when they put some skin in the game.At the "contract to hold" meeting, I collect an amount equal to one month's rent.

Secondly, sound underwriting does require that you have "skin in the game" which is why the banks require you to use the lower of the sales price or appraisal value even if the appraisal value is higher then the sales price. 

Since I'm new to this I don't know the logistics, maybe if they got some skin in the game and helped with the cost of improvements it would dissolve some of your fears and concerns. 

With a lower COC return, you're making less money for how much 'skin' you have in.