This is the first I'm really posting what happened because I wanted to get over the emotion of it and approach the subject as objectively as possible.I may, when I get time, write a letter to the board (perhaps a complaint.....I know it's been a while, but it may still be worth it.) and possibly leave reviews on Google and Yelp.

Your comments above seem to indicate that that both properties will put money into your pockets on a monthly basis.Don't underestimate the amount of headaches that you encounter, both financially and emotionally. 

In digging a little deeper, I learned that the outstanding mortgage is $140K, and there is a state tax lien of $1280 and a federal tax lien of almost $48K (which is why they haven't budged on price in years I'm sure).

In order for them to be appealing to this specific market (city dwellers, deeper pockets, a specific design aesthetic), we could put in about $1k in cosmetic design-related improvements and about a week of work.

I sent him to one of the local banks I work with and they were able to dig a little deeper into his business to see what his true income was and they gave him the loan.I think thats what you're going to be limited to.

RE taxes $3900Water/Sewer $2000/yrI'm offering low - $120k, with hopes of ending around $140-$150...I am financing it, putting 25% down and planning to pay cash for the roof, so mortgage payment of under $700 a month, (plus ~$500 for taxes and insurance - though I don't have insurance quotes...need to dig deeper on rates...that's including about ~$175/mo).Seems like a good one to me...I'm doing property management myself (with my partner), and my partner is the maintenance guy, so we don't currently have those costs, though we're planning for them in expenses anyway.

A complete, clean and nice smelling staged rehab provokes an emotional reaction that causes buyers to buy on emotion.

Chris mentioned the Fannie Mae 1003 loan application form, that is a start, but credit issues need deeper analysis if there are issues.

Don't get emotionally involved.  

At no time am I playing on the emotions or duress of the owner, nor am I attempting to take their equity due to their personal circumstances.