Seems like a no brainer to buy a condo at a discount but I am worried about using it for a long term rental because the HOA’s eat away at the cash flow.

Kitchen will likely be $15k, if all new is needed, roof if often $6k plus, HVAC another $6k, and add some bathrooms, paint, lighting, etc and you have likely blown through the equity upside in rehab costs.  

If the units are less than 1500sf each then the price per door for new units should definitely be under $4k per door without a quantity or off season discount. 

I'll add that I find that these loan types typically require a greater number of discount points to be purchased in order to get to a "near conventional market rate" (i.e. what you'd get on a conventional loan for an investment property at that point in time).So, larger down payment requirements AND larger up front capital required to buy down the interest rate.

I need a roofer, bathroom and kitchen installer, sheet rocker and a painter.

I replaced the toilets, vanities, medicine cabinets, vanity light in the bathroom.

Increasing bedrooms, renovating one bathroom.

@Rachael CampGood idea on asking for a discount to handle the removal of the tenant.

Obviously, for BRRRR to work you need to be able to force up serious equity meaning the property has to be at discount.

Similar homes that are true duplexes in the area, with similar sqaure footage, bathroom and BR numbers have half the tax burden.