Your family home wouldn't be at risk.You have a good point - I really have nothing against putting 25% down on the first rental property vs. 50% as long as it cash flows, because either way if I get into a bind I can just pay it off completely.  

Once you complete the project you can refinance (without seasoning) for the purchase price + actual repairs done.    

The M-1 rail will provide a great boost to some areas and if you're willing to do a complete rehab, it might pay off.  

I left a note but was hoping to find out where they are now since the house looks completely abandoned (boarded up windows) and there is no mailbox.

However as long as you're clear on the specifics on how to complete a 1031, I think this will just come down to patience and luck on getting your offer in first. 

We hold 28 units in Indianapolis currently, and managed to complete a BRRRR strategy last year on 8 units.

I'm curious as to how most seasoned investors who have completed these type of deals would approach the seller.

To further explain it looks like the first duplex is move-in ready and the "bonus" one needs a complete rehab and is uninhabitable.

You'll need to complete at least one, if not two deals a year just to cover those costs.

Or is the answer, my costs are going just simply going to go up if I want to remain in that space.