We didn’t have a large supply of ready tenants from which to choose who *did* have jobs, for quite some time as the city is rather small.  

If so, you definitely do not want to supply them with those, there are laws that prohibit that.

Replace all outlets & switchesInstall vapor barrier in crawl Space The cost of the job is as follows;-New 2 ton compressor/new coil & supplies $1100- Central air install $600- Sub panel supplies & install $500- All supplies & utilities $15,000- Labor $6,000- Appraisal $500- inspection $400- Lawyer $500- Lawyer fee for zoning correction pendingWhen we began the rehab we noticed the previous owner created a doorway between the apartments and originally the was a brick wall between the two units.

How much real estate supply does the area have? 

There will always be renters, it is the exact supply that is in question.If a city/neighborhood is up and coming, then your supply of renters will increase rather nicely. 

And the coolest thing is that Amazon Key is a new service where Amazon will deliver supplies inside your house or garage so you don't have to pay anyone to pick up supplies for you. 

My question is what can I do to create a stronger case for my local bank to take over the loan? 

That being said I actually ran your numbers through a proforma I use and here is the break down for that: Purchase price: 129,900Effective Gross Income: 22,086 (vacancy 10% of gross income; 2454)Expenses:Expenses%EGITaxes $ 4,618.00 20.9%Insurance $ 1,500.00 Heat $ - Electricity $ - Water / Sewer $ 1,200.00 Trash / Recycling $ 180.00 Lawn / Snow $ - Management $ 2,208.60 10%Repairs $ 1,104.30 5%Capital Expenditures $ 1,104.30 5%Supplies $ - Accounting / Legal $ - Miscellaneous $ - Total Expenses $ 11,915.20 54%NOI: 10,170.80Financing: Down Payment $ 32,475.00 25%Bank Loan Amount $ 97,425.00 75%Interest Rate5.50%Closing Cost $ 7,794.00 6%Loan Term (years)30Monthly Payment w/ ESCROWDebt Service / yr $ (6,638.02)Debt Service / mo $ (553.17) $ (1,063.00)As is your property you're looking to purchase is valued at 7.8% cap rate and will produce cash flow of $3500/ year.

Buyers place values on income streams based on all kinds of stuff (alternatives, interest rates, money supply, economic conditions, confidence, risk, location, supply, asset type, upside potential, demographics).

I learned a lot regarding HVAC systems from the feedback supplied by you all and my own research.