The owners of these properties have owned them less than 3 years and have done literally nothing to add value to the units, yet they are asking for ridiculous numbers to sell. 

We're currently exploring that market to see if housing prices are more affordable down there as Provo/orem is a little ridiculous

Even those areas seem to be ridiculously priced now.

I've been actively looking for deals in Palm Beach County for several months now with zero luck.Prices are ridiculously inflated and competition is extreme from other investors and also hedge funds.I'm just sitting tight and waiting for real deals at the moment rather than overpaying like everyone else.

I have about a million stories just like yours and some a lot worse and much more ridiculous. 

Obviously they made the fees high to get me out because that is ridiculous without any notice.

That would be ridiculous and outrageous.  3.

Bottom line is, repair costs are ridiculous, but so are the property appreciation rates.

That variance in debt service payment can make or break the cash flow number. 12% sounds ridiculous, but if the deal will support it, it is simply another expense like a roof or kitchen cabinets.

Now according to the FEMA FIRM, this ditch and the land adjacent (the 2 houses described above) are in the 100-year floodplain (which i think is ridiculous bc we've had several floods exceeding the 100-year in my life and it has never over-topped...there are steep embankments on either side that help with flood conveyance).So, the neighbor is looking to sell off market and has given me the chance to offer.