Everyone in this thread is saying some great stuff.One thing I'll add- The harsh truth is you are going to have to put in higher offers than the people you're competing against. 

For those who had strict parents, domineering bosses or harsh teachers, discipline evokes those memories of restriction and control rather than enablement.

I have seen 2 very harsh boom busts in my area as well as a few small ones. 

File eviction papers.Although this may seem harsh, there is a lot of validity to this angle.

Someplace that old needs a thorough inspection of the foundation,roof,electrical panel and wiring,plumbing,water heater,and HVAC.Especially in a harsh weather climate like Wisconsin or anywhere up north.You really wanna check for long term water damage to the foundation and base of the property caused by years of snow and ice, no moisture barrier installed,and poor drainage.The cost of repairing these items should be factored into your bid price.You didn't say what the after repair value of the property was,only that they were asking 135k.If the ARV is only around 135k after improvement costs then 100k and just cosmetic changes would be decent.However,if you find after a thorough inspection that the place needs far more work to get up to code and up to stuff,then you need to show the owner all the problems and negotiate the cost down to cover those repairs.

Providence has some harsh taxes right now at upwards of $2200 (educated guestimate) and from the looks of recent studies they are likely to go up.

The harsh reality is that the United States is now $33 TRILLION is debt, at least $1T more than we were 90 or so days ago. 

Although it may sound harsh, a large bill can kill cashflow for the month.As for the extra income, talk to your CPA/a tax professional, your scenario may be different than mine.Keep us updated as things move on!!

Yes, this is the "issue" with doing a house hack --- you have to live in your construction zone.Sorry to be harsh, but if you can't afford to pay rent and carry the mortgage on another place, you need to either earn more money or not carry two places. 

The harsh truth - commercial brokers won't give you the time of day on pocket listings unless they are confident you have the ability to raise the funds to close the deal.