-his property value with subtractions for repair 102-13(foundation)-10(sewer)-10 cosmetic updates -5(roof)-64k-he owes 92kI approached him with an offer of 92k.

Take that number and subtract your estimated rehab costs. 

In Rochester, Buffalo, and Niagara Falls, NY, I can find SFR's and Duplexes that will bring in gross rents of 2% of the purchase price, and I can calculate 50% of the gross rents to be counted as "expenses" (like Mike Oh's rule) and subtract the debt service and be able to cashflow $100 per month for each $50,000 valued property.

If you can add and subtract, AND NOT RATIONALIZE bad numbers, market analysis is easy...but make no mistake about it, it is the most important analysis you will do.  

If you subtract out a few because they've been displaced by the SFHs, and add back, say $50,000 for each SFH (have they been parceled-out on their own land?)

And, you need to subtract the HOA fee from the rental income, because that is not your money. 

If you subtract the stabilized numbers from the general numbers you can get an idea of what's going on with the new properties too.The HB reports are nice because they break out the submarkets, that level of detail usually isn't free.Also if you like reports in video format MPF's Property Management Insider site covers many of the larger TX cities: http://www.propertymanagementinsider.com/regional-apartment-markets They also break the data out by submarket and although they don't produce a video for every market every quarter you can't get a feel for what's going.

Drive the area and call for-rent signs.Now, having the rent, subtract 50% for expenses, vacancy and capital.

Reach out to cash buyers in those neighborhoods and determine their buying criteriaAnything that needs to be changed, added/subtracted to my current process?

After chewing on this for a bit I realize I do not have the funds to pay for the zoning lawyer, zoning, and demolition, so do I just get estimates for these services, and then subtract that dollar amount from my asking price?