At auction I do my homework (title search, comps, visual inspection of the property).

Investment Info:2 BD/1 BA Single Family Home in Evansville, IndianaPurchase price: $66,016Cash invested: ~$25,000This is a turnkey property that was purchased initially at $70,000, however due to some repairs that came up on the property inspection report the price was amended based on the cost of those repairs.What made you interested in investing in this type of deal?

Most standard contracts already have an inspection and financing contingency built in, so just because they weren't discussed in detail with you doesn't mean they aren't there somewhere. 

Due Diligence - how quickly can your inspector get out there and turn around an inspection?

Partially due to bad contractor, partially due to my lack of inspection on the buying side.

After the inspection, and requesting all things be fixed, the owner has come back and said that they will lower the price to 69K and that they will only fix what the lending appraiser says needs to be fixed.The unit currently has a renter paying $650 a month that wants to stay.

The property was in good shape and passed all inspections.

When I was a Realtor it would take me the best part of an hour to do comps right, but that was because I drilled down deep on each property and took the time to do the job right.In fact, you might want to pay that same Realtor to represent you so that you have someone to guide you through the offer, contingencies, inspections, disclosures and negotiations.Good luck!

Permitting and inspections are also much more difficult in DC.

My plan is to leave as little of my own money in the deal as possible and I highly doubt that going directly to a local bank or credit union will get me there since they would inspect the property and realize it needs some work.