Regular financing may come in at just over $400K conservatively. $300K would be needed for DP.

You are going to see at least repair costs for mowers, weed eaters, lawn seed, fertilizer, man hours billed for cuts, etc.I would add at least 15,000 in additional costs on the conservative side for landscaping related costs for a facility that big.

Below is the spec on the duplex.Stories:1Year Built:1982 / Appraisal DistrictBuilding Sqft:1,512/ Appraisal DistrictLotsize:6,617 Sqft/ Appraisal DistrictBoth units are currently rented. 1 unit @ 675 and 1 unit @ 650 (tenant has been in this unit for 10 years).Here is my calculation: NOI = gross income minus all expenses = $731 Total Rental Income: 1,325.00 vacancy estimate: (109.98) gross income: 1,215.03 property tax: (145.08) Insurance: (100.00) CapEx and Repair: (132.50) PM Cost: (106.00) total expense: (483.58)Monthly Cash Flow = NOI - Mortgage = $298$1215- $433= $298That's about $150 per unit with a pretty conservative calculation. 

I think that conservatively the area supports $550 (*8) for a one bedroom and $600 (*8) for a two bedroom.  

USAA does have an agreement with a third party company, but they were much more expensive for much less coverage.

I would offer that you place a third party manager that is acceptable to the seller in lieu of a bond.

I am rounding my mortgage costs up for easy calculation and my owner expenses (percentages) are pretty conservative Purchase Price: $215,000Gross Rents: $2,400 ($1,200 per unit)_________________________________________________________________________________-Mortgage Costs-Principle: $1000Interest: 3.5% ( I may do a rate & term refi for a 3.2% interest rate)Taxes: $210Insurance: $140 (Lowest quote thus far)Appox.Total: $1350/month_________________________________________________________________________________-Owner Expenses-Utilities: $0/Minimal (water and electric separate)Prop.

Homeowner Association Information Request2.what statements define the terms of an agreement and give the other party cause to void an offer if the terms are not met?

Now you negotiate to come to a point that both parties are happy.

They must pay the same as any other redeeming party--12% interest per year on the taxes due plus 12% on the overbid, up to 15% of the overbid (example below).