Any concerns with the current mortgage holder in doing a deal like this from any of you pleasantly experienced investors? 

Perhaps I'll concede that for your particular circumstance 50/50 is very fair and we can avoid a lot of useless back and forth.I’ll respond with my concerns, if any.

They might be in danger of losing the property to foreclosure.

My thought on that is if I can find PM for properties like this, then the only major concerns I would have is vacancy and repair/maint cost?

I will obviously do my due diligence concerning the zoning, etc. before committing to anything. 

It just sounded so easy, but I believe I am in the category right now of "a little information can be very dangerous".

One would think she had an idea of what the condition was prior to giving you an offer but regardless had they set aside the time for due diligence she could've voiced her concerns then.

My concern is that each unit is only 1 bed/1 bath and the property has no laundry.  

The major concern I have seen is Loan to value and debt to income.

We understand your concern of "voodoo" numbers, so we are obviously sensitive about it.Stick to good markets, and good neighborhoods, with great property management and you will be very pleased.Continued success!