If this building was in Denver, a few miles from downtown, it would easily go for about $5 to 600,000.

You will benefit because they can better budget for a fixed known amount.Make sure you have your tenants on M2M so that if there is a issue with costs you can easily change tenants or increase the rents if your regulations allow.   

I will send you a colleague request so you can easily find me.  

I could easily be wrong but with these issues I don't think I'd be able to get conventional financing so I was considering asking the seller if they'd be willing to finance so I can at least get in to the property and do the necessary upgrades to make it rent ready and safe.

In our neighborhood, this home as a high end single family (by the time we are finished), should be worth about 500k (optimistically); $450k easily.

Duplex units in back currently rented for $600 each and 2/1 could easily rent for $800 so 1% rule is very attainable.

If you don't easily find someone, please let me know and I'll see who might be someone for you to call.  

Also, I would actively manage the rental properties at that point as I would be working part time and be able to do so more easily, and I would save on the 10% management fee. 

@Joe Frey you have to be careful because just splitting at some arbitrary value will not be accurate and could easily violate local laws.

There are plenty of investors that can easily exceed this with finding off market properties, negotiating better prices, finding beat up properties that are scary and highly discounted and cashflow well after rehab.