Do some investors buy sight unseen based on cap rates?

Based on all your inputs I'm definitely going to walk away but I appreciate everyone thoughts and advice.

I don't know all of the particulars of your situation, but based on a couple of possible scenarios, here are some suggestions:  1.  

So here is my main question: what are your procedures for applications and lease agreements?

Commercial real estate investing is largely a matter of analysis regarding financial data, conservative projections based on that data, and market/feasibility.  

Evaluate each "deal" based on your verifiable numbers, design capabilities, and return requirements. 

Do you have a full knowledge of the RTA and how the LTB both interprets and makes rulings based on it. 

The deal seems off based on just the numbers but it never hurts to try, they can only say NO

We recommend very simple procedure for our clients in this situation and it works all the time without any problems. 

Quick question before I give advice -- based on the cost numbers ($28K purchase, $50K rehab, additional $15-20K rehab, plus any purchase/holding/selling costs), it appears that there's a good chance you're going to break even or lose money on this deal.Are you prepared to do that?