I found a 2 flat for 129,000 great condition - currently occupied - gross rents are 2,300 - only issue is that taxes are $7,800 annually.  

As foreclosures increase, more rental units will be required.http://www.deptofnumbers.com/rent/us/

The immediately adjacent property (same floorplan, age, condition, size and shape lot, road frontage, etc. sold for $149k in May 2015.The LO did disclose the comp's.

Sorry, can't help, but I find it strange saying they know before it hits the legal news as a lender cannot disclose the loan condition prior to public notice, so it may be they picked it up an early morning copy, LOL. 

I am looking to get a 30 year fixed mortgage shortly (construction to perm to be exact.) and am trying to find out the best way to file 2016 taxes to increase chances of approval.

Even at $50, thats $50 x 78 units = $3900/month x 12 months = $46,800 in additional cash flow above the increase we were already shooting for.  

Your solution is the same - you can buy quickly and in as-is condition.

How much will it take to get in livable condition?

I will have to admit that i have thought back many times to before i was married and had 3 kids that if i could have done it again that would be what i would have done.Condos could be good could be bad... the thing you want to watch out for is the association and how often the increase the dues... they tend to cut into your profits.

In any case, these new technologies are increasingly becoming expected by home buyers and businesses.