Regardless of the time/effort and even cash expended to-date, you made an executive level decision to cut your losses and shop elsewhere. 

So any loss in rental income could be deducted from his security.  

Sure Cap Rate is important, but constant turn over, evictions, and repair costs are often a bigger loss to income versus buying a lower cap rate property that rents $1500 range. 

Although being downtown means they are very old so maintance is not lower with big capex items like Windows always hanging out there.

Do your research on ARV, vacancy and loss to lease. 

For years, one credit card was enough, but in 2015 we did some upgrades and put the more expensive items on one of the credit cards that we got as a zero% promotion this year, so we essentially have a free loan on those upgrades for a year.

This will give you time to negotiate for those items and if they balk you can walk without losing earnest money.

I hope to be able to acquire a few more buy and hold items, ideally fixer uppers around me because I love learning and trying things around the house!

I also don't know the comps out there - if this thing needs 10K to make nice and someone can sell it for 50K then that's not a bad story to resell it to someone.It will probably take a special investor if it's in the shape you mention - need more info to really know, but the items you mentioned can be fixed for under 5K with the right help.  

Current Numbers:Purchased for 95k in 2005Note Balance $59,830.20Rate 5.75% 30 yr fixedMonthly Payment P/I $675.35Rent $1000.00Cash Out Refinance NumbersCash Out $13,885.73 + about $1500 from our escrow accountDebt to be paid off $60,000.00Est Prepaid Items/Reserves $2160.27Est Closing Costs $3289.00Loan $78,750 15 yr fixedRate 4.5%Monthly Payment P/I $831.09Rent $ 1000.00Rough Numbers If I SoldSell Price 110kLoan Payoff 60KCommissions/Closing costs 8kCash to buy a better deal 42KSo based on all this, what are your thoughts BP?!