I own a few MFH in Tacoma and while they don't hit the 1% rule you can certainly get some decent cashflow with minimal repairs/upgrades.

So never let them do repairs on their own or out of their own pocket that they aren't responsible for.

The price seems to be about $200k less than anything you could find in San Diego county.I agree with the other comments that you should always go with the worst-case scenario in analyzing the deal (plus the contractor is a better expert for repair costs than your agent, but I would get multiple bids).It doesn't seem like there is enough meat on the bones for this deal. 

Number 2 the hard money lender is going to require the contractor to do repairs before getting paid.

There no doubt will be unforeseen repairs and vacancies, but you don’t put that in cap rate, do you?

I think I've located the source of the leak and will bring someone in to assess repairs.

Also has a mobile home on the lot that I may be able to repair and rent out as well. 

The cash flow equation is another story, make sure if you cash out at 75% LTV it will cash flow after the mortgage, taxes, insurance, and vacancy/repairs.

Even though the property may have recently been updated you still need to save for future repairs/replacement.  

On the 55k needed for purchase and repairs i can lend $46,750 you would need total assets of 16.5k + title - this includes 8250 down, $3500 origination, $995 underwriting, and reserves (we just need to see reserves in your account) Is this more or less what i can expect shopping my deal around?