Buying a non-performing asset (an asset that generates no income), that I am only going to sleep in that sells for 6, 8 or 10 times the average income in a particular area, is not something I thought was a good "investment" in 2006, nor do I think it is today. 

Charge non refundable pet fee 200-250 a pet.

Structural Vs non-load bearing?

@Mark Smith They  need 12 month clean history   of mortgage to cash out. 

There may also be non-monetary factors to consider, such as the family members expected rate of appreciation for the property and tax considerations. 

 ( i have broke that rule) Painting a bare basement is all I do to my rentals , clean no maintenance .

The goal is to create a lease option wholesale deal that will require a $10,000 non-refundable deposit from a tenant buyer that will go towards the purchase price, which will be $110,000.

Could they have been shut off for non payment?

It's got some deferred maintenance so our contractor is slated to start work this coming week, new roof, bath remodel, windows etc.Now I'm wondering if we should be adding a third bedroom instead of just cleaning it up.

If they do not understand the market, regardless of the purchase price, you'll hard pressed to find a non-local lender to fund the deal unless they are Fannie / Freddie sponsored.