I usually like smaller, local, more focused banks, but the lending environment is healthy and a large majority of banks would like your business.

It was a long time before Astoria and LIC was finally "discovered" and I really feel it will be a while before it finally tops out and that includes the rents which continue to go up at a healthy clip.  

I typically negotiate the price so it makes sense for rehabbers like you to make a healthy profit.

Will try and renegotiate this.Also, to clear a few things up - seller is selling because he is old, his health is failing him, and he is moving to Florida, not because the economy.

The valley is where the soil is most fertile.    

I'm new to the game but that doesn't seem like a healthy choice for my first investment property.

There can be a number of problems and delays in the process and you need healthy margin to help overcome those issues. 

The terms on these loans are much more stringent than a traditional mortgage and usually require 40-50% down payment and a healthy amount of reserves in place to absorb expenses (capex, vacancies, maintenance, etc).  

, and then somehow someway I just know they will handover the keys to the kingdom, and everything will be hunky-dory, everybody makes their money and goes-home happy, healthy and wealthy!  

I'm fairly young, and see this as a way to grow my retirement at a very healthy rate without coming out my own pocket (yet) to do so.