We have not appraised property yet, and when we do appraised our condo 5 yr ago, of course actual sqft and listed are difference but only about 5-10%, did not expected to see under 4,000 sqft when we considered over 5,000 sqft house.

This is usually done after inspections and the appraisal has come back. 

I think working through a RE attorney would be helpful and absolutely would keep inspection and appraisal contingencies.  

I'm sure that the bank's appraiser would not agree with the $350,000 price tag.

However, the appraisal came back at $65 K.

Basically your friend can get a guaranteed return by lending you the money for purchase and rehab at a fixed percentage (say somewhere between 6-10% - I’d be willing to pay a higher rate to a friend that makes my life easier in not having to fill out massive amounts of paperwork, hiring appraiser, having credit pulled, etc).

I need someone to come in and get it appraisal ready.

@Drew Sygit & @Evan Polaski I don't think property Mangers should be GC's when they have in-house services. like I said if the PMC employees on payroll like maintenance, cleaning, landscaping, even some admin time for court or appraisals Ect. 

They have been LTR. gross $2900 each per month, current appraisal is $220. 

For the latter, only thing is if the inspection show something unexpected (eg needing a new roof when it is obvious that the current roof is toast won't fly) or it appraises lower than your offer.