It's a great area within walking distance (5 minutes) to shopping, grocery, coffee shops, and historic neighborhood, and about 5 minute drive to downtown.They are asking $695K for it.

After some networking with other local investors I've come up with a few smaller shops that should have good insight into the best avenues, so will pursue that as well.

They are now shopping your deal and trying to find a real buyer before coming back to you and signing your assignment.

That guideline is lender specific, so I would suggest shopping it around. 

Quote from @Jason Varga: Hi all, I am an American expat looking to buy a duplex in Cleveland.

There have been lots of stop and starts with businesses opening for a few months to a year only to close due to rents being too high and not enough people to patronize the shops. 

As well as coffee shops like Bottoms Up Coffee are moving in and small microbreweries like Brew Dog and Land Grant 

I just recently listened to you BP episode.I have also actively been looking in the Flagstaff area with the Short Term Shop agent over there after talking to Avery, @Luke Carl.

As mentioned above your new rate should actually be 6-7 range not 8s so shop around.

While these contractors are certainly out there, in my experience they also tend to be the ones that work with home owners directly and charge "retail" prices, not "investor" prices.I would shop around with lenders to understand how they work with their loans.