I'm over by you in Philly and work around in the city and surrounding counties.  

Most vermiculite (attic insulation) popcorn ceilings and such just don't pose enough of a risk to worry about.So, I sprayed the ceiling with water, put on a painter's suit and a respirator and scrapped the ceiling in about half an hour.

@Ryan Alexander What do the comps look like in the surrounding area? 

The area surrounding overall is good.

@Douglas GuerreroI Agree with affordability.I rent in coconut grove, Miami now. 1 bedrooms in this neighborhood and surrounding areas are $1850-2500 for 1 bedroom.

When I started doing my initial analysis it seems that the value based on the Cap Rate and NOI put the property at a significantly lower value than it's surrounding SF properties.

I have dealt with all of this and more.You can only improve an individual building and raise rents so much, when it's surrounded by a bunch of crap buildings in crap neighborhoods.

Property value doesn’t appreciate like it would in Ontario or Alberta a few years ago, but with the smaller mortgage payment and higher rents, there are all kinds of cash flowing properties in SJ and surrounding areas.

Any suggestions on this besides dampening insulation?

I walked around to the backyard to  see a weathered deck surrounding a nasty pool.