There is a maximum of $35k - 10% contingency reserve for renovations.

Pull the trigger, but make sure you make the purchase contingent on an inspection.

@Christopher LaneI'd find out what the current owner bought them for and when, usually through the County Assessors website.I would look at comps of recent sales of similar properties in the area.I would thoroughly walkthrough the units themselves.Then I would come up with my offer price, and add a contingency for repairs after a thorough inspection is performed.

I just went to the city and asked them to make it a "non conforming legal duplex" and wrote my offer on the property with that qualification as a contingency.

The more contingency's you put in your contract the less likely they will get signed. 

While they are within contingencies the sellers can back out of the current contract and move on to your now higher offer. 

It would be a bigger leap but maybe you should be figuring out how to make a buyout offer to everybody,   contingent on everybody agreeing.  

I can close faster, I only really need an inspection, no appraisal, no loan contingencies etc.

when offering a referral fee, make the fee contingent on locking in the business. 

I was willing to go up higher on the price as well as remove most contingencies and am convinced that if given the opportunity I was willing to out pay the eventual purchaser (I would have considered going up another $50K even if it could not be financed at that amount - obviously I was willing to remove the finance contingency).