Some rental owners have active maintenance programs and actually have reserves or means to replace worn out roofs, driveways, windows, hvac, plumbing, etc some not so much..Without going in to too much detail, does it look on first glance like they milked the property and are looking to pass all the deferred maintenance and major replacement costs on the next owner?

Common things I would look for is "Age" of the Roof, "Age" of the Hardware(Furnance/Hot Water/Etc) also if it has a basement which is an issue in the North and the tenant's History and Payment.

Our inspectors are also not allowed to get on a roof (for liability reasons.)

I may be wrong about this, but if I was going to buy from the city I'd field that question on BP and see what people had to say about it, and how their experience was. 3) Lastly, about the particular deal you're talking, I guess more particulars would be needed. 1/4 of ARV would be great if all you need to do is refinish hardwood floors, but if you need a roof, new windows, cabinets, plumbing or electrical work, paint all around, siding, tuck pointing and I have no idea what else, you could be approaching market ARV just putting your repairs in!  

Roof + Foundation OK, needs complete interior rehab.We were brainstorming on ideas on what to do with the property....

How is the roof and the AC or furnace, appliances, etc.?

any one know how to get rid of raccoons that could possibly nesting in the roof area of a rental?

3 Bedrrom, 1200sqft, new mechanicals, new roof, clean throughout, being offered at $12,500.

That's a new roof and paint job every year.I've seen what 2% will get you around here and I wouldn't want to deal with most of those tenants.

However, just as in every market (even Detroit where some house sell for $200), there are always people who live there and need a roof over their heads.