Hi Jathin,I run a mortgage brokerage out of Los Angeles and would be willing to hop on the phone at some point and talk specifics.

It was brought to the sellers attention who advised he would repair the garage to stop the flooding (he was a contractor).

Based off a loan amount of $78,400 at 6% interest and Annual Property Tax of $1,280 and Insurance $750, your payment would be approximately $639.21 Factor in 20% percent for vacancy, repairs, and property manager fees and your left with $752 for a profit of $112.79. 

You don't have vacancy, repairs, CapEx or Prop Management factored into your numbers and you don't mention the overall condition of the property.

I'm using the typical general equation: ARV x .70 -  repair costs = purchase price.I understand the markets are super red hot now however. 

Thanks Derek for the advice that's really helpful, and yes as soon as she told me I shared my condolences and did ask a little bit about the situation but I didn't want to dig down too much to the point where it may be too personal for her to talk about to a stranger.I definitely like the part of continuously following up with her and building a relationship, that makes sense and once she is ready to sell then I think I will have a leg up on others.So my next step is to find out the ARV of the property through comps and like you said try to figure out how much repair cost it needs then make an offer.

On one of my recent repairs, he left the job midway and is expecting a pay for the unfinished work.

To get a "deal" you will probably need to buy a property that is distressed and need some repairs.

@Jay Hinrichs I have an app on my phone called "watermark".

I took over an existing tenant who frequently asks for repairs, or has complaints about the property.