Replace w/ Drywall: $8,000Windows: $6,000 (optional...they are single paned windows)New Half Bath: $10,000 (optional...full ball + $5,000)New Appliances: $2,000New Front Porch Roof & Railing (optional, has existing patio): $3,000New Kitchen (optional...countertops, cabinets, fixtures): $10,000Purchase Price: $180kLivable ($1,100/rent) - repair floor w/ vinyl, fix roof, seal walls/ceiling, new appliances, new half bath: $22,750 + 20% overruns: $27,300 Nice: ($1,250/rent) "Livable" + new windows, new covered front porch, new full bath): $36,750 + 20% overruns: $44,100Excellent: ($1,400/rent) Gut house - new floors, walls, ceiling, appliances, kitchen, front porch, full bath, and new roof: $76,500 + 15% overruns: $88,000We'll probably target 'Nice' as I think that will give us the highest rent relative to costs.

Id like to get the ball rolling since it could take some time to find a duplex or triplex but I don’t want to risk losing my chance at 3.5% down with the FHA.

@Demetrius Ward I bought a long distance investment property using conventional financing just to get the ball rolling.

Call some contractors and ask for ball park costs for rehab on items.

For whatever reason it is not selling, which makes me think I could go in with a low-ball offer.

Maybe it will happen, but waiting to get started until your crystal ball shows you the future will lead to inaction.  

@Brian Conne I don’t have a crystal ball on the lumber or construction prices in general but I hope in the next 6 months.

You will need to ask yourself a couple of questions in order to get the ball rolling on a potential purchase. 

There are many reasons that may cause you to dislike the deal leaving the ball in your court. 

Also, all sales were at list price or higher, so low balling isn't a great strategy.