It's been on the "most dangerous cities in the US" list in recent years....so there's a reason properties are cheap. 

Seems very dangerous. 

It's like using a tour guide that was so afraid of taking you into areas that you might potentially find dangerous, and after you were done, you found out that you missed all the good attractions?

Is taking out a personal loan less dangerous than taking out a mortgage?

Cash, or "cash like substances" are the best way to buy and that means you can buy for as high as 100% (don't make a habit of this), and then refi most of your cash out to use again.  

Buying a property and having no money for rehab cost is a dangerous game to play.

Sounds dangerous

However I am seeing a small but growing number of accountants who are willing to document an arms length market transaction and be willing to document a substance over form argument. 

I REALLY feel sorry for these guys because they HAVE to conform to the Hotel laws, including sprinklers and egress, plans for evacuation, etc.HOWEVER, these hosts circumvent the building code by re-classifying what is a defacto Transient Occupancy business such as a Hotel as if it is a long term residence.This is dangerous not only to the Guests because they wouldn't know that the apts do not have a mass evacuation plan, etc. but to the neighbors who paid money, sometimes millions, for their luxury condos only to find out they are living next to a hotel in the next apt!

I tried a google search of local companies, and didn't find much of substance.