If the buyer performs on the contract (2 year option), I will end up making $9,000 plus around $500/month in cashflow.

Make sure to advertise in all the available channels you can find so you can perform a true test.

Its not 30 days from the notice date but rather 30 days from when their current tenancy period ends.In a human way, just approach the tenants with your notice in your back pocket and explain that you purchased the property with the intent to rehab it, and need the property vacant to do so as the work being performed will be intense and intrusive.

The best overall returns I have seen came from a property that was about .5% on purchase, whereas those that met the 1% “rule” have performed worse overall from a cash on cash or IRR basis.

Can't bank on either of those but they'd be a nice boost if they happen in the future.

In fact, I actually see Class B/C assets out-performing a lot of Class A properties in a lot of secondary markets.

(Not recommended because if it is sold the buyers will check the rental income and your income will be short) That could possibly be explained. 3rd: If the owner is performing maintenance/repairs/improvements this would be calculated in operating costs since no one would be able to live in the space anyway. 

The appraisal performed by a licensed appraiser would be the most accurate in this case but if you do not want to pay the cost to have the appraisal then it may not be worth it.

This is especially in consideration that your buying a performing asset and and not a hummer, home remodel, trip around the world or other horrible use for your HELOC.

Before going to contract next time ask if there is a CLEAN phase one on the property performed within the last 6 months?