I am also wary that the landlord is a family friend, and I don't particularly want to sour relations, in the event that I decline and the sale doesn't close.Any advice would be appreciated.

Can't wait to see the finished product !!

Aside from that, you can call the bank and make an offer on it, they can either accept or decline based on what it is worth.  

So in that sense, @Jazz Wilson is just another unproven product to them - until he beats out the others!

But luckily I declined knowing there had to be better options, which lead me here!

The appraisal came back stating that the expected time from market to sell in this area of Dallas is 3 to 6 months and that values are declining.  

As the rate of job growth declines (deceleration; jobs growing at a slower rate), the rate of RE price appreciation slows.

I have also looked at Eastern PA (East Stroudsburg, Scranton, Wilkes-Barre) where prices are more affordable and cash flow numbers look better, but I am concerned about the economy, declining population, and vacancy rates. 

most contractors want to do a productive time rather than chat through lunch.

I believe after review of the comps, I can put a much BETTER product on the market.Comps$590,000 or $275.6/SqFt - 6380 Surfside Way 3/2 2141/SqFt$430,000 or $260.4/SqFt - 661 Benham Way 3/2 1701/SqFt5 Month Project Duration - 2.5 Month Rehab / 2.5 Month SaleARV = $595,000 or $275/SqFt@  4/2 2163 SqFtRehab = $180,000Fixed Cost (Sales Com, Sales Closing cost, NON cash outlay)$39,885Cash Outlay ( Buying Closing Cost, Monthly Loan payments,Utilities, Etc)$20,962Purchase Price = $261,000595000 - 180000 - 60847 - 261000 =Profit =$93153Note**** that there are TWO loans in place here.