They mentioned how Dom helped them narrow down neighborhoods for a multi-family purchase and even flagged potential zoning issues before they made an offer.

This should be a non-issue.

I know this seems low, but the way I see it, this is how much the buyer would potentially walk away with if they posted it on the market and minus all the fees and concessions so I am getting them to that number with none of the hassle and removing the issue of a looming foreclosure.

Makes me think they could be too busy taking care of a new baby to attend to guest issues? 

It was bought in 2004 and due to financial issues, I believe ~$197k is still owed on the mortgage.

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

So far I’ve had no issues. 

This takes care of most of the issues.

The other issue is that it does not have much equity at all.

Things break and issues occur every day of the week, uplanned.