Also is it wise to purchase a severely dilapidated multi-family home at below market value but stipulate extensive repair cost, if so what is the threshold to not exceede for construction and purchase price?

All of my leases stipulate that I give at least 24 hrs notice prior to entering, however, I try to give them more just to be courteous.  

If so, what would your process be and what stipulations would you have?

If you are under a special loan program it may have other stipulations.  

@David Waddleton not sure what your stipulations are, but small towns typically work best for that amount.

(that is the city can sell your property to recoop the unpaid bill)   In this case I write my lease to be for $x rent and $x dollars for utilities....but I stipulate that the payment is only an advance payment of estimated billing....once the 1/4 bill comes in I reconcile the difference.... too much they get a rebate....to little they owe me.  

I know more than half the tenants we've rented to are so excited to sign the lease and move in, they wouldn't all the numbers and stipulations your telling them and just sign having no clue. 

It is a single family so you could stipulate that aside from the infrastructure the tenants are on their own.

Since you control the project, he may feel a stronger position to recoup losses than you.You could either offer him a greater upside on initial projects, with stipulation that after one or more deals profit, youve proved up and it goes to 50/50, or accept his deal based on the confidence that it is under your control so you wont have losses.

(Appraisal stated that certain repairs-such as adding a stove that is missing, sheetrock repair and touchup paint must be done before home reaches appraised value-contract price $85600-appraised value after about $1500 in repairs $97500) Original appraisal came in at $90,000 with no stipulations but somewhere along the way the appraisal was revised with stipulations.