One of the biggest risks I observe with flips and first time investors are instances where the project goes over budget or gets stuck in mud, can't sell and even worse the borrower doesn't have the credit profile to refinance out to a lower interest lending source if borrower is required to hold the property as a rental. 

I don't know what your budget looks like but this city is really inconsistent or "street by street."

As I am considering my offer, I am trying to understand how much to budget for attorney, title/closing costs etc? 

If borrower has a $100K rehab budget but the lender has $50K draw minimums, borrower will require more cash to advance project than a loan that has lower or no minimum draw releases. 

If you didn't budget your rehab correctly, and don't have access to more money, you will be stuck (this is also true if you buy with cash without any excess money).  

Due diligence is key before you sign on the dotted lineBuild a network of a great property manager, lender and maintenance teamDepending on your budget, I usually would start with at least a duplex, triplex or quad.

Well, there is this pesky obstacle called budget.

Yep.... that exact same price.So, yes, offer what your budget allows and if the seller says no, just move on.

My other recommendation is once you decide in a budget and a couple criteria get a really good realtor.

If you do it right, it’s arguably the best market to invest.Purchase: $80k-$130kRent: $1100-$1500 (no rent control in MI)1% rule: .9%-1.4% rule dealsCoc ROI: 5-12%Total ROI: 20-40%Cash flow: $50-$250/door (after all expenses and budgeting for maint, capex, vacancy)Appreciation: 3-10%+ (has been double digit for a decade)Location: C+, B-These numbers are based on the “sweet spot” in Metro Detroit.