Pre- 1974 there are EPA lead based paint certification rule and contractors disturbing over a certain sq ft of space.If you do not follow you can face very stiff penalties into the five figures.Older building like that I usually go 60 to 65% of gross expected in costs.

Since we purchased in July 2013 we gutted 1.5 bathrooms, renovated kitchen, new paint/trim and new floors.

My guess is your asking price is too high.In my market, even if the house looks decent, rehabbers will generally be updating the kitchen and bathrooms, refinishing the floors, painting, etc. 

That will have to be paid at close.Facts: 2 FR: Unit 1 : 2/1 900sf  Unit 2: 2/1 900sfARV 150K based on several compsRental Income: 900x2=1800/moCap Rate: 9%Assuming I could freshen this house up with paint, carpet, minor repairs for less than 15,00070% ARV=$105,000 -15,000 rehab - $5,000 (closing and moving allowance for current owner)=$85,000 max offerDoes this sound right? 

Here is a quick list of things to look for when DFD:•Missing Window Blinds•Dead / Overgrown Lawn•Bad Roof•Lots of Trash and Cars with Filthy Windows–No License Plates, Flat Tires•Broken Windows•Lots of Deferred Maintenance / General Disrepair•Peeling Paint•Overgrown Trees–Lots of Tree Litter on Roof•Fire Damage•Graffiti•Owner Board Up•Notices Posted on Doors / in Windows•Uncollected Mail / Newspapers / Phone Books in Driveway/Mailbox•General AbandonmentWrite down the address & take notes, go home and research owner info/mailing address using local title company, send letter.

It's actually a little more involved than just paint and carpet, but it's the closest to "paint and carpet" that I've encountered in a while.This house was built in 2006 with 3 bedrooms, 2 baths, and a 2 car garage.

We subcontract concrete, roofing, and exterior painting, siding, windows if we are doing the whole house or bigger jobs.  

By asking if you can wholesale it says you want to pass a contract for a fee, if your intentions are something else, you can say so as you really wouldn't be wholesaling if you are simply assisting her (which, IMO, is where your duty should be).You said she had no equity, but worth 90 minus 15 is 75 and her mortgage is 70, that's 5 k in equity, settlement costs will eat that but she has equity.How did you get your rehab costs, what is really needed, I could do a modest kitchen rehab, change out all the flooring, interior paint, and do some outside work for less than 15K.

And paint beautifully of course.  

With a solid core door you can fill a chip with wood filler, sand, and paint over and it can look good as new.The older 1950s homes I buy generally all have solid core doors which can take a lot of abuse.