The population has decreased in both Detroit and Cleveland between 2010 - 2013, but Atlanta's MSA population grew by 236,214 between 2010 - 2013.

My salary is $70,500 and my husband owns a business which he took over a little over a year ago (my next concern - when we purchased this unit the bank gave him a hard time before he owned the business due to a short work history and they deemed his income commission) which has netted approximately $20k this year and we don't forsee decreasing by the end of the year.

You would still need the new subfloor but it will be quicker and cheaper due to decreased labor.

I'd also ask the seller to take a 2nd mortgage to decrease your down payment.  

If he has a taxable gain, then any buyer who is willing to be cooperative with him in structuring a 1031 Exchange or any other tax planning strategy will be a huge plus in getting his attention.  

Depreciation decreases your income.  

The legal fees would then be added to your property's basis and decrease (or eliminate) capital gains. 

That way, you get the cash out in the form of a loan (not taxable income...even though it is income to you).  

My realtor (who is also an investor and a property manager) says I can sub-meter this and have the tenants pay for the water without decreasing their rent.

Murders have decreased in Detroit, vandelism has decreased and we have this great safety net we pay for called insurance to replace stolen property.