They would probably roll out the red carpet for you.  

Cash on Cash Return Down Payment $18,190Closing Cost $2,500 Rehab Budget $10,000Misc: inspection $400 Total Investment: $31,090 Cash on Cash Return 9.6% BiggerPockets: The Four Square Method for Analyzing Rental Properties form.This is an REO, the realtor is advising to start at the listed price of $72,760. dollars. 

The property we are looking at is on a 10,000 square foot lot which is about 2x as large as typical lots in the neighborhood we are looking in.

I'm no pro, but my first property was a 4000 square foot assisted living facility (with 16 beds in 8 bedrooms) in Philadelphia on the border of a warzone and I bought it in 2009.

These units are slightly superior based on square footage and parking.).

As an example for your "demolition" section, I'd figure out how much square feet (SF) of wall needs to be removed and show it on your sheet as $/SF.That way when you're done with the project you can go back to your original estimate and enter in the ACTUAL costs and compare to your estimate. 

If they hesitate, red flag.

not taking advantage of Seattle's highly appreciating market" is a red flag.

Anyways, zip code is 98503.Information is as follows:Total monthly income : $5545Five units at $725 / monthTwo units at $675 / monthOne unit at $595 / monthAll units are 2 bed / 1 bath @800 square feet eachCoin operated laundry (income from this is not included because it was not provided)Consists of two 4-units on one parcelAnn Tax: $4100Wtr/swr/grb: $5256Insurance: $289625% down payment with ~4.5% IRAssumptions: 5% vacancy, 10% for maintenance, 5% for Capex, 10% management fee.

red flags1) you would be buying it for 97.8% of list price (AKA: anyone can buy it at that so if it is available is it a good deal?)