It looks like the issue with your deal is you don't seem to be buying at a discount.  

Does anyone have a sense of what I can/ should expect for an approximate discount from market price, or other advice? 

If in Denver I would bet its 5ft deep range.

Plus MyGaREIA has a home depot benefit of 2% rebait on all purchases AND 20% Behre paint discount at the cash register.  

Meaning that if you need to find support from others as to why you are justified in your actions or have some conflict with your decision, you may need to check your premise.That may be a little deep, but it always steers me toward the right answer.  

When valuing MH Parks for purchase we will discount any and all park owned homes.

I have been in engaged in deep reflection and being honest with myself as to why I want to buy apartments and multiplexes.  

So 203k is a great way to buy a property at a discount, get funds to repair it, all with only 3.50% down and have Seller pay all closing costs.

Have seen some real deep tanks but thats unusual.If probing is not finding it you may have to have some of those fancy under gound ultra sound type searching. 

As I diving more deep into emerging markets looking for value add plays with multifamily apartment complexes Im learning a lot about how to spot an emerging market with specific key indicators which is very helpful of knowing when to buy.