I was hoping for some suggestions on how to go about this refi and whether this is “the norm” or unusual.

She actually remembered the property (it was a little unusual as a duplex that someone had run wires across the units).

Oh, but don't forget to deduct tax on that).I reckon there are just too many uncertain variables to risk paying (at least) $89k on a home that sold comps say should be worth $99k (if rehabbed to market satisfaction).Looks to me like the "seller" is a wholesaler, looking for a flipper-wannabe to whom $10k seems magical... 

The tenant has an uncertain future in your property and understandably wants to move.

He said it’s an very unusual request and due to federal laws, I needed some form of documentation for anything extra being put on the HUD statement.

@Leroy Feireira-shearinBig risk and uncertain reward.

I've got a bit of unusual situation here and am wondering if any folks (perhaps attorneys?)

I am probably unusual in this regard.

Does anybody in the community immediately see anything I should look out for that might be unusual about this job?

If you're feeling uncertain about putting your money in a "bad" market, these people will be key to helping you make a good choice.I would try to focus on one market, if it's out of state, and learn as much as you can.