I'd say first thing is to try to nail down a budget and then a couple neighborhoods.

Andreas nailed it.

Walls had extensive nail damage/patching, walls were in bad need of painting despite providing paint to tenant multiple times during tenancy.

On a first deal I think that can be challenging to nail and sounds like you did a good job?

Make sure you get esstopal letters before purchase to nail down the details of their lease.Why terminate.

Sounds like @Adam Menconi and @Bill Bockwoldt are great resources so I will do my prep work.Re the use permit, you hit the nail on the head.

A win for the investor (which can only be determined by finding out what their needs are for being a part of this and nailing it), a win for you (purchasing an asset using someone else's money), and a win for the tenants you are housing (making sure you take care of each and every tenant ethically and with respect). 

@Jason Chen I think you nailed the sentiment of the other posters. 2011-2015 Duplex's in solid neighborhoods could be found in the $50k range, particularly in the midsize cities of the midwest.

3) As a final nail in the coffin, "waiting for bank to accept and previous buyer to terminate."

Chris Martin...you hit this nail on the head.