Without knowing the many variables needed to know if this is a good deal, I can tell you right away buying at 80%+ ARV is a bad idea, especially with the issues you mentioned.

If you are getting a quality tenant in that area and you already have instant equity the long term return of holding it would most likely be the best verses selling it as a flip.

I’ve got about $25k cash, $60k in credit lines, good contracting and industry experience (did multi-family portfolio management for a while) and no job (so no mortgage opportunities).For you MN folks, what’s the bottom of the “crappy but not tear-down” bad?

That's not a bad plan either. 

This should help alleviate the bad blood at this point.

Don't feel bad for anyone as some tenants make up sob stories for you can give them a break. they signed the lease and glad they are paying. it comes with the territory.

A lot of quality commercial properties are sold off market.

Those are the people that I am going to be buying from in the future when they realize they had a bad deal at the time.

Rural rentals attract very much lower quality tenants.

The problem is that there are no limits on how many short-term rentals a single property owner can operate, he said.In some Arizona cities, Drennon said, “bad actors” are buying and converting entire apartment buildings into Airbnb rentals, effectively creating hotels in residential areas and depleting local supplies of rental housing.By contrast, traditional hotels typically operate in commercial areas that have much higher property tax rates.Many cities around the world — from Paris to New York City and even Airbnb’s home city of San Francisco — have laws that limit short-term rentals to protect the hotel industry and residential neighborhoods.