The deed in lieu sounds like it might be worth investigating.  

David -Definitely don't give up, but you probably want to investigate some options that involve partnering in some way with another investor who has cash.

even though it's a federal program, local housing Authority offices vary widely from very bad to pretty good. investigate the local authority

I feel that getting 3 estimates, comparing them, investigating the companies social medias (pictures are real, clients have good reviews, price isn’t too cheap, materials are included, they have a vehicle, this isn’t their aide gig) etc, are things you need to check.

The deal didn’t work out after doing all of the suggested investigation.

Since then, they've steadily increased to a high in January 2018 of 3,866.The city has 25 open STR investigations.

They are currently with a PM, but I am investigating alternatives. 

.  --   3780 sq ft 2 story office building (office was previous use)--  Built appx 1900 -- think it's brick, or block with some sort of facade, possibly limestone as that is common in the area -- has a basement as well with partial crawl space -- good soil in the area--  Appears to be structurally sound - no issues - however needs further investigation, the floor joists are likely large old world pine/oak or other hardwoods shipped in so they should be good as long as no previous termite damage/dry rot--   Basement professionally waterproofed 15 years ago - should be no water issues, we've had lots of rain locally (more than we've had in likely 10-15 years) and basement supposedly has not leaked, think it's limestone/concrete -- Building also surrounded by Concrete -- water should not be an issue-- Per agent this week there will be a new roof put on (Flat Roof) at a cost of $17k-- Asking price $60k-- Has been occupied by an accounting firm for I believe 40-50 years - they owned the building and have left as they merged with another local accounting firm and moved to another building-- Dated inside -- lots of paneling, probably dim lighting, HVAC is kind of dated****************************Potential Downsides/Other Pertinent info-- Likely will have low or nearly non existent price appreciation, other than upgrades I'd put in -- I probably wouldnt factor it in any of my figures-- Lots of ranching/agricultural, oil/gas, wind energy activity around - city has the closest major grocery store/Wal Mart to lots of people located in more rural areas within a 1-2hour driving distance -- town is important for that aspect-- Located in a small community - town has appx 12-15k people, however it is a bedroom community located off of a VERY well maintained interstate and it's only 20-30 mins drive from the City I live in that has 500k people --   The city is a good "Clean" town if that makes sense, very nice community gym close by-- Building is on the downtown core - right off of one main arterial and 1 block from the other -- no plans in the future to alter traffic flow etc --- Lots of money has been put in by the city/local govt to maintain the downtown area and make it a very nice walkable area - with lots of little shops, antique places, a couple cafes etc -- A local company in the refining business recently moved the majority of their business there from Wichita and has put a lot of money into this community -- large donations to the college and elsewhere (they make additives and are a nationally known brand -- have been around since the 70's - only way they go down is if we go away from the internal combustion engine - dont see that happening in the time I'd own the building) 

I'm just starting to investigate Madison and Milwaukee as areas to invest in. 

The city went to investigate my property, and found there were no issues with the bird feeder or the claim it was increasing roof rat activity in the neighborhood.