Purchase a foreclosed, tax lien, HUD owned, or short sell multi family property - We've had success w/ all of these & you have a good plan, but don't limit your search to these type of properties.  

We lived in a rural area at the time so there wast not a whole lot of business but we did make a decent living with it.

Short sales (underwater property) are not wholesaling friendly, and a wholesaler is likely to just screw around the seller, wasting 3-4 months. 

Alternatively it could meet a economic wall that cannot be ignored and come to a very abrupt stop leaving a lot of folks drowning (just ask some of our neighbours to the south how quickly the party can end).Finally, yes, there is still money to be made, but the approach you outline is more speculation than investing.  

 $5,000 (could go with cheaper laminant and save $1,500)4) Gut the two small bathrooms $7,000 (Replace bisque jetted bath tub with white standard tub, reframe leaky tile shower, replace vanities/ toilets.)5) resurface kitchen cabinet doors $1,6006) granite counter top ~$3,0007) Remove structural wall separating living rooms $2,0008) GE appliances $2,200There is other work to be done (HVAC, foundation, paint etc.) but items above are the ones with potential for cost savings. 

I had plenty of mentors when I started, and even though I came from a Wall Street background, their generosity in sharing knowledge gleaned "in the trenches" has been invaluable, and saved me thousands of dollars.  

The appraisal report comes with 2430 sqft Gross living area. 397 sqft finished basement and 140 sqft non-living finished area (due to the wall of one bedroom is not high enough). 

(nor a first for that matter) Sometimes I feel like I am wasting my time looking at some of these tapes. 

Also thinking the poured in place option vs poured upside down then installed later,,,to be an easier one man band operation,,,more forgiving IF walls are imperfect. 

Taking him to court is a waste of time for both of you.