Hey @Corie Carpentier,Consider how to get the seller to throw in additional concessions that give you more value than they lose.  

Annual numbers are:Built in 1984 - Seems to be a B class complexPotential rental income $900K-$1M gross6% vacancy ($60K), $20K addition income from vending/laundry - no other amenities, $65K taxes, 5% ($50K) Capex, $28K Insurance, $16K contract services, $90K payroll/staffing, $150K repairs/maint, $6k utilities (tenants pay their own), $10K accounting/legal, $5k advertising/marketing, $100K (10%) PM (is that redundant with staffing?)

Ok guys I need some insight before I go insane ..On my personal  residence I recently did a construction loan for a large addition and had a lot of work done .the contractor has been paid through the bank on five different draws according to what he’s done he’s a small outfit so we’ve been very lenient and the inspector from the bank seem to be as well because he ( contractor) would not always complete the work in the draw outline .

The key additional question is moving forward would they insure the property if the answer is no at purchase 

I would like to buy a single family and rent out the additional rooms. 

No additional cost/premium to tenant.

Additionally (I may be off-base here) but I think another benefit to a fix & flip to me would be the personal experience of rehabbing a home. 

@Shawn Kostoff, I’m reaching out to the city for any additional fees or implications but what else might you have in mind?

One often overlooked but important item as mentioned is finding out about additional junior liens Before making an offer.

Any unused passive loss gets carried forward.Let me know if you have any additional questions.