I say go for an old, run-down warehouse type setting, but play down your interests of sprucing the place up. If the landlord/seller sees a general lack of interest, he or she would be less likely to hold out for more dough. Play up any major damages, but don't itemize them in terms of a discount.
My family wound up getting the house we currently live in for less than half of the asking price because we thought it was such a dump. Nobody brought up the fact that for still cheaper than the asking price, we could totally makeover the place. We just poked at the stained carpetting and had a good chuckle when I slipped and fell on the wooden back deck (which was rotted and falling apart).
What the hell is my point? A young couple had put in a bid on the house not a week or two before we did, offering $350k as opposed to the asking $375k (which, in my neighborhood, is about the average price of a house). They thought this house was fabulous, just perfect for starting a family of their own in. The seller turned them down. My dad commented to the seller that the house was a bit of a shithole and looked to have had no repairs for the last 20 years that it had been rented out. He offered $160k and the bastard took it! Add roughly $40k in repairs (not all of which were neccessary- new hardwood floors, screened enclosure added) and we had a very nice house.
So, there's my real estate advice for the day. Find yourself a fixer-upper, but don't get too excited in front of the agent.