Your ARV may be off, your construction budget may be off, and when someone tells me they are going to flip a house in 4 weeks, it screams "newbie, I don't know what I'm talking about." 

I may not personally like it, it does sounds fishy, but I can't wholeheartedly run around screaming "scam".  2.)

But it's free, and that screams sales pitch.

Do your homework and find motivated sellers so you can get a screaming deal!

Eventually things start breaking and when there is no money to fix them fees are forced up or special assessments are doled out.I know a lot of investors have made a lot of money in HOA's but after managing several of them I wouldn't touch a unit in one unless it was an absolutely screaming deal.

That's what happens when the market has been screaming upward for so long.

It'll certainly eliminate most - if not all - owner occupant buyers regardless of price or other considerations.I wouldn't be thrilled to buy a SFH investment property with that lease in place either unless it was such a screaming deal that I could afford to take the negative cash flow hit every month until the lease was up and then I could cash out.

Unless you are getting a screaming deal, I would really dig in with the City and find out what is going on with that and what their position would be if someone complained.

So... by adding in funds for potential repairs, cap ex, property management...these numbers do not scream "BUY THIS" at me.My philosophy- and others may disagree - is that with older buildings at high New England Prices, considering the costs of repairs, taxes, etc, that a building better be able to pull in a lot of cash to make sense for a buy and hold. 

Sprinkle in a lot of reading on BP and you'll save a ton of money plus you'll probably gain better knowledge.The offer you've outlined screams caveat emptor (The princple that the buyer alone is responsible for checking the quality and suitability of goods bfore a purchase is made) aka buyer BEWARE!