If you can get in a see it and come up with a good repair estimate, you will have a much better idea of whether or not you can get it cheap enough. 

I tried lowering the purchase price by $23,000 (light repairs @ $10 per sf).

The info provided is from a wholesaler Please note he states its a teardown and the asking price is more than the comps he provided which are larger properties than the subject property.SFR2 bed / 1 bath 792 sf Lot: 8,599 sfPickup Price: $475KEst Rehab: $775KAfter Repair Value: $1.8M ($450K per unit)Tear down existing home to build 4 brand new townhouses with 3 bed 3 bath and approx 1,500 sf each unitComparables: 12307 Cheshire St # A Norwalk, CA - 3 bed 3 bath 1,322 sf Sold Price: $435,000 14786 Pioneer Blvd Norwalk, CA - 3 bed 3 bath 1,483 sf Sold Price: $422,000 12309 Cheshire St # C Norwalk, CA - 3 bed 3 bath 1,142 sf Sold Price: $417,000

The beauty of owner carry is I do not have to do repairs on the property. 

I did some repairs, listed it through craigslist and then finally hired a realtor to help with the property. 

High quality problem!

It was brought to the sellers attention who advised he would repair the garage to stop the flooding (he was a contractor).

Based off a loan amount of $78,400 at 6% interest and Annual Property Tax of $1,280 and Insurance $750, your payment would be approximately $639.21 Factor in 20% percent for vacancy, repairs, and property manager fees and your left with $752 for a profit of $112.79. 

You don't have vacancy, repairs, CapEx or Prop Management factored into your numbers and you don't mention the overall condition of the property.

I'm using the typical general equation: ARV x .70 -  repair costs = purchase price.I understand the markets are super red hot now however.