Same situation, would cash flow about $250/mo with no money into the deal.My only fear is I dont want to load up on C class property rentals because of all the drama that comes with it, and lower levels of appreciation and ongoing maintaince, but at the same time it seems foolish to walk away from cash flowing rentals with no money into them. 

@Aaron Kovac You need to fill out a rehab check list when you walk the property, take a lot of photos, and then go home and build a scope of work.

About a 15 minute walk to the ferry with some views of NYC. 3br, 1.5 bath.

Take advantage of your situation and crawl before you walk.

For the record, I am a cash buyer and can ballpark a rehab budget in 10-15 minutes of walking a property.  

They want to do a walk through that evening which is not going to happen for a number of personal reasons.How best to get keys and is tenant responsible for unit until keys are returned? 

I definitely want to cease the opportunity I just need to crunch some numbers and figure out exactly how much I would walk away with vs keeping it and increasing rent every year.

After walk through, I believe my best option is to give a 60 day notice upon closing.

If anyone runs into this scenario in the future Bally to walk you through it!

I let my agent know that I don't want to lose the house equally as much as I don't want to keep the current tenants, but if it comes down to closing with tenants or walking, I'm going to walk.