If it discharges 5 foot from the building and there is a low spot running back to the building, then it is going down hill back to the building.

I have high equity in my current duplex so planning on using that to fund down payment for the next property.  

The SST doesn't apply for legal 2-flats so if you want to use FHA it's probably better to target those that maybe also have a non-conforming basement or attic unit.This is why the 5% down conventional loan is a game changer for house hackers.

We went down to thw studs on most rooms. 

It's a dishonest promise.If you are in foreclosure, it sounds like you are either there or headed that way,  what you are encountering is a "foreclosure scheme" they are illegal in most places and for good reason.

We also have many unique buyer incentives where an investor can get up to a 10% price reduction to come into immediate equity, or get that 10% as a cash back at closing to reduce your down payment and increase your ROI, or buy rates down into the low 4s on 30yr loans to maximize cash flow.

I have more to put down than 20k.

I would guess less than 1% of deals are seller financed - and most of those are still done with 20% down.

Step 2: Narrow down your "buy box" (are you market-indifferent, are you looking for a certain level of cash flow, etc.).Step 3: Connect with real estate agents and begin making offers!

We don't know if he should adjust up or down, because we don't know the details of his rental.