Landlord needs to make repairs to pass inspection to re-rent and can't get blood from a stone so landlord opens their checkbook and pays.

So don't jump the gun and tip your hand to early.If 4 or 6 months pass and no idiot comes along, that's a good time for you to pop up with a reasonable offer (that the seller is considering "lowball," but so what).

4) Any tips or tricks you can pass along with this method? 

It's also extremely hard to win with an FHA loan to house hack in NJ because of the competition and the repair issues that won't pass FHA.

After they pass the screening, offer them a new lease and give them one week to sign and return it.

A novation on a deal like this would possibly kill your profit if you do any Reno because of the added cost that comes with selling the property (not to mention the headaches that sometimes come with novations) I'd take a look at the numbers again, If the numbers posted here are accurate, I'd pass on this one

Total profits last year—subtracting property taxes, management fees, insurance, and repairs—were approximately $12k (which was then divided into shares for us and relatives).The city is Grants Pass, Oregon, population 40k, with median household income around $50k (50% lower than the national average).

I thought Bigger pockets was about knowledge and information but I guess for you it's about passing judgement without truly grasping the context.   

The alternative is that we all pass on deals all the time that could have been.  

A house can pass inspection but once someone is living there it's being put under daily stress (faucets turned on/off, heat/AC on an off, etc) so be prepared for repair costs