It translates to basically 25 times expected annual spending.

Important when purchasing a HUD home with financing:-Make sure your lender knows the property is a HUD and can/will work with their closing requirements as they are not flexible-Make sure your lender has a workaround if you are not able to activate utilities for the appraiser (this kills many HUD deals)-Keep in mind , any utility activations are at your expense - HUD allows no repairs/alterations to the property prior to closing so no lender required repairs can be completed

The other walls we plan to alter will not be. 

Translation:  old house, old neighborhood, water/wood/sand- we are the Foundation Challenged. 

(The lease stipulates that written permission from the landlord must be given prior to alterations.) 

(i) Acquire, purchase, renovate, improve, alter, rebuild, demolish, replace, and own real property and any other property or assets that the Manager determine is necessary or appropriate or in the interest of the business of the Company, and to acquire options for the purchase of any such property;

Everything is negotiable though, you can alter your contract however you like. 

Mind you she's frantic and we're using google translate and the little bit of table Spanish we know to try and figure this out.

I used this negotiation technique with a first time home buyer, recently, and I'm curious how it would translate to RE Investment.In my market (SLC, UT area) the market is beginning to plateau.

But he had previous business and real estate success, which you will need in order to raise capital to fund the down payment and have skills that translate into execute the business plan effectively.