Based on the income, location, and condition of the property I think it's work 199k, but also want to get the best deal possible (and the owner even said she understands I'm looking to get a good deal). 

@Jeff Macdonald, With your limited experience you could either buy a single family or 2-4 building with 20% down, 30 year fix mortgage in good condition and learn to manage it and do work as needed.

This typically doesn't take much time because I've gutted the places shortly after purchase so everything is in new condition. 

When you keyboarded "these houses" what homes are you specifically talking about... location, style, condition etc.

But the house is really in a bad condition.

I get properties in all price ranges and conditions.  

I listed the condition of the property to give a feel for the lack of care to the property vs. tenant's insistence that it is in 'excellent' condition, and to give an idea of his behavior.  

I really like this idea and feel like it keeps the land lord in the "know" regarding the conditions of their properties, and how tenants are treating them.What types of things do you look for when you do a review?

Remember that a flip is usually going to be under market because of the condition - this typically means it is a cash deal - plus you are going to have to have a repair budget to bring it back up to par so you can sell it.

everyone else thank you all so much for the welcomes. my biggest question i have as of right now is, when you have motivated sellers calling to inquire about selling you their property, what is the best way to determine how much to offer them for their house in AS IS condition??