Third, make and get an offer accepted.

Tax breaks will get you 25 cents back for every dollar you spend, not a good trade.What is an acceptable rate of return for your cash net of expenses each year? 

This is less than what I'm willing to accept normally, but the owner has indicated he would do a "no money down" deal with 2 year option, and a sale price of $56,000.

Cap rate methodAssuming a median cap rate of 10% for the area, offer price = $98k (NOI of $9737 divided by 10%)So, based on the above, I see a wide range between $98k to $159k none of which the lender may accept by the way.

On the main page is a link to "Forms for eFiling" which has copies of the Original Notice FED (and/or MJ) that you'll submit, along with a Verification of Account (for each tenant). https://www.iowacourts.state.ia.us/Efile//Once they accept the filing, you'll receive the court date/time back from them.

Is cost to build and acceptable difference to develop?  

Hello BPF,I have located a 2 Unit multifamily  property in Baltimore City and would like to know how do I  work the figures to ensure that it is cash flow acceptable?

Why bother with the added risk by accepting a tenant that is a concern before you even start.

So you want to screen for a good tenant/buyer and not just accept the first party who is interested but has little chance of ever qualifying for a loan and cashing out the owner.Also I strongly encourage you to consult an experienced real estate attorney to make sure you are complying with state laws (specifically your state's real estate commission laws). 

Lower appraisal standards - When your lender is conducting their due diligence, their underwriter will send an appraiser to the property to determine if the condition is within acceptable limits for lending on.