OP, you can repost the contract if you like but please block out personally identifying information for both you and the seller. 

That sounds like a potential road block or at least a pain.While waterfront property is the most desirable, I'd be very nervous about starting a spec house that likely won't be complete for 2+ years (after approvals, design, etc.).

Someone selling investment properties has probably been around the block a couple times and will look to your ability to pay to consider the down payment and terms.If you are a strong buyer, you can get by with the nothing down or 2K deals more often (not saying it's impossible if you're not).

Hopefully that isn't a road block.

I ask her if she has the comps I sent her showing the exact same type of house on the next block sold for 13K less that what we listed.

(I find some buyers have the cash but credit,reserves,employment hits a stumbling block with lenders)2.Buyer purchases on cash flow and occupancy on income approach and NOT comparable sales approach which is typical with 1-4 unit appraisals.

It was a "bad" block, there was a lot of crime and poverty.

Currently there are 3 similar properties within a block that are listed at 150k, 150k, and 135k respectively.

there's one about half block from 1 train.. 80% renovated when the developer ran out of money (it's in good shape).. contractors estimated about another $500k work into this 5 story townhouse.. two 2bd 2ba floor thru unit and 1 4bed 3 ba duplex with roof top terrace.. plus a ground retail space..real estate agents estimated the rent in this area for 2bd 2ba is at least $4200.. and duplex at least $16,000 .. retail unit was already requested by a chain coffee shop for $12,500 .. annual expenses around $53k.. 7 and up cap rate.. bank wants $4.6mil.. which is way below market rate (local brokers estimated $9mil FMV when it's completed).. question is.. how to do this deal with no money down??

Nic, You said you've been shooting a while so you are probably way past this, but Greg Block has a local basic handgun class in which he spends significant time discussing the legal aspects of using your weapon to defend yourself.