Lastly, if your able to buy using the 1% rule you have enough built in positive cash flow that will enable to ride out the downturn.

That 6 month rule thing is a "conventional" loan rule.  

I currently have a propertyware account that supports 50 unites.  

This is not uncommon - I own 6 notes in BK and it's been 50/50 on whether the mortgage was through the BK or outside the BK

If they pay a week early the price is x minis $50X - $50 being going market rate.  

Or rather they work under dumb rules as they are not "lenders" at all.

There appears to only be a few other TDY rentals in the community (less than 50) and the property management company I spoke with estimates about 85% occupancy.

I am unaware of any studies or reports that can prove the tankless will on average last 50%-100% longer than the standard tank.

If you talk to her and say, "You know, I think it's probably worth $175K after it's all fixed up, I think it will take me $60K with with all the known and unknown work, plus 6 months of my own time (@$4k/mo), interest on the loan, insurance, permits, etc etc, so subtracting that from the final value, I can offer about $50-60K." 

50/50 split is terrible!!