We got a prelim layout together for bid and loan purposes but we're having an architect friend walk it tomorrow to make sure we're not missing anything.  

There's a half completed rehab comp on the block at $55K list price, and it can be used office + apartment layout.

I think we are going to use it as an office and place to store some of our outdoor gear.The person that is actually renting it right now was shown the layout for the other unit (by the previous owner) which has three, average size bedrooms.

Google it under images- there are some really nice layouts of community ideas. 

I think you have 2 options: keep scouring the market for a value add deal (an ugly house, something that needs a lot of cosmetic updates, is in a transitional area, or has a funky layout), or explore some options to add to your bankroll before buying anything.I was in the same boat as you are a few years ago in an equally red hot market, and it took me nearly a year of looking before I found a deal I could afford and knew I could add value to.

Or just being out of date with today's technology or layout. 

@Brent Coombs I didn't make the template and honestly, I didn't take much time to manipulate the layout since I was more focused on the information/data I was entering to learn the process and see the outcome.

layout=infini&v=5C&orig=1&adtest=5C

Negotiate with them.Go back to sellers preferred lender and lay out your personal financials, 2 years tax returns, property experience and value to the project, business plan -including professional management co, partnership arrangements, specifics of the property in question: current income/expenses and income/expenses you anticipate after taking control, etc..

your welcome.. if you understand the HML mind set going in your not shocked when they lay out the terms.. your loan would be better suited for a quasi private money lender .. there are plenty of them here on BP....