This is the only issue that preventing me from closing on the project.

Who will do the showings and collect the money and fix the clogged toilet? 

@Daniel C.In 2004, I bought a similar property like the one you are describing.However, at the time, Clinton Hill was the similar to what Bed-Stuy was about 5 years ago.In your case, the property is $1.25 Million now.In my case, it was $890k and cashflow broke even.Fast forward to today.I cashflow $3k per month.The property is worth around $3 Million.I have been investing in Brooklyn for 20 years and now have 6 multi-Family including 2 in Bed-Stuy.If the above example is too long for you, then I'll give you another example.In 2014, I bought a 4 Story, 3 Family building on Hancock for $900k.Put in $300k of renovations.Today, it cashflows $1.5k and the building is worth $1.8 Million.People tend to do Cashflow analysis as if the Cashflow that you get today will always be the cashflow you get for the rest of the Investment's life.In NYC, that kind of logic will prevent you from buying Great Properties which will not only give you fantastic appreciation, but will give you a ton of cashflow in the future.That being said, as @Richard Mui mentions, it's about block by block in Bed-Stuy.

One of phrases from that book that stuck with me is"If you're a major COG in the organization, you're also the major CLOG."

Property has violations which may prevent you from getting a loan.

Two were leaks through the roof, which in my opinion aren't too bad to take care of as long as you can find the source and you get it fixed quickly to prevent further water damage. 

I think building up your team and getting things in order is a great idea but don't let that prevent you from starting to look for deals. 

What I am seeing is huge student loans, many with reduced payment or deferral agreements that prevent or at least challenge millennials in qualifying.  

That might be a step for preventing future issues.Best to you.

@Daniel GonzalezSo if a new owner comes in and wants to upgrade the property and do an extensive remodel he is prevented from doing so ?