Then on top of that you have all the other expenses which you could have paid out of pocket for or had added to the financed sales amount.Then there is the depreciation consideration which is based upon the total purchase price, which the downpayment is a part of.

The 70 % formula is just a general rule of thumb and is based on selling to cash buyers, it does not take into account the cost of hard money or the commision to sell the property if using a top gun realtor (which you should) so...to take into consideration some of your buyers will be using hard money to finance the purchase and they will be selling the finished product through a realtor -make you offers at 65% of the ARV rather than the standard 70%.

Again, your strategy is important to take into consideration when evaluating a deal, there is no one way.

I'm not usually very keen on condos, but the maintenance she would have to deal with would be considerably less than a house.

Banks do have seasoning issues if you are trying to refi off new appraised value, but if you have documented inprovement i.e. invoices and pictures, they will take that into consideration.

Listed at $78k I was, however, able to talk the sellers down in price considerably (down to around $50k).

I personally have not seen too much D class stuff that I thought was really worth pursuit once everything was taken into consideration.

Correct, those are expenses that would need to be taken into consideration also.

Also, what would be a ball park offer price with those considerations in mind along side the tax benefit of 50%?

If this is the only property you have under consideration right now, you're not going to make your goals.No earnest money on short sales.