Some of the comps below like Cedar St. and Glenn St. where the buy-in is in the $50/sq ft range are more the buy-in price I would be looking for if you stay in this type of neighborhood.

So I have done 3 fix and flip rehabs alongside my managing broker, on all 3 she has come across the property through her network and was able to purchase all cash below market value due to a variety of reasons on the sellers side.

If I'm going to offer below their asking price they can just say no and I wasted my money on an inspection. 

Having a person live in the property for below market rent can be considered personal use.

You could likely engineer a deal where he sells you a couple that you finance at more of a discount to allow your LTV to be low enough for a small down payment.

If you can’t get what they estimate, it appears it would immediately draws you below the 1% rule.

I like to think that when your return on equity drops below a 10 Year Treasury Bill, it might be a good idea to redeploy. 

Even at the current below market rates the deal will still cash flows $130/mo per unit, after factoring in 10% vacancy and 10% maintenance/capex. 

That would seem appropriate here if it is below the deductible; the owner can just write off the repairs at tax time. 

I have the preliminary calculations below.