Now if the landlord climbed up on the roof and drilled a hole...

All real assets have investing dynamics of cashflow, appreciation, tax favor, and debt pay down (if leveraged), so if you are looking at an asset that has VERY strong cashflow but lower appreciation, you'll simply want to know that going in and compare it to how another asset that DOES appreciate would perform.In my market there is usually a direct correlation to cashflow and appreciation.  

@Stacy MansonAt this time with such low balance you simply don't have enough to do any alternative investments.

I don't want to give details or tag them on here but but lets say they did all the verification they could including talking to a couple prior landlords and 8 months later they had to redo their remodel to get rid of the bullet holes form the tenant/tenant gunfight across the hall...  

In CO, it's simply the NOD.

I want to simply have the buyer buy it from the court for 6,500 and charge an assignment fee of 5k.

Especially for simply spraying something on.Is that “spray on” product going to replace all the worn away asphalt granules that help with waterproofing?

Or simply sell with tenants in them.

Is this allowed/legal or are they required to adjust my assessment to the actual cost and their variance report would simply reflect an understatement every month as they simply over-budgeted for it?

Now you're $4,600 or more in the hole and it will take you 46 months (almost four years) to catch up.