It seems that properties in the area can range on average from 50k-75k.

I’ve frequently been driving for dollars scoping out this size range.

So you and/or your partner will need to have an unlimited residency permit (Niederlassungserlaubnis).From what i can tell of the residential property market, the cap rates are very low (3% range) and the rental income doesn't cover the mortgage costs often times.

I think in this market the buy and hold or BRRR are the best because of the historical above average appreciation growth and the tech and manufacturing jobs moving to the area. 

Malarkey 30-Year Dimensional Shingles.I have gotten estimates ranging from $5,500 - $7,500, which all seem like total rip-offs to me given the small size of the house.What do you think?

There are some hard money lenders that do not require an appraisal, rates range from 7-9%, and at 65-70% LTV.

Then, look at price range and laws/regulations and that will boil things down a little. 

If it has gone up and down rapidly, then that indicates a boom/bust market (typical in areas without a diverse job market such as areas where all of the jobs are in tech, energy, manufacturing, a single employer or supporting those workers for example). 

My initial analysis suggests a conservative offer in the range of $3.2M to $3.35M could be justified, factoring in current market cap rates and the property's upside potential.I'd appreciate any insights on:1.

DSCR rates are currently in the 7.5% - 9.5% range right now.