After taking into account property taxes, utilities, water, insurance, and a 10% repairs & capEx fund, I figure he's making ~$5,000/month. 

If rents are $1600 and you got it at a discount, meaning they paid repairs and sold it for what they owed, you still couldn't make any money on this deal.

HOA fee - If HOA fees are not paid, business will incur fines, so it is necessary to make the profit in the business.8) Marketing expense and advertising9) Cleaning and maintenance10)Commission (Expenses like commission, abstract fees, recording fees to obtain your mortgage are not deductible but rather capitalized )11) Insurance12)Legal and other professional fees(Tax preparation for business, not personal part)13)Management fee if applicable14) Points- you generally cannot deduct the full amount the first year but have to deduct them over the term of the loan.15) Repairs (Note always do repairs rather than improvements to rental because repairs are deductible right away and do not have to depreciate over few years as done for improvements.

The House is in an estate and want to do a cash transaction to avoid the bank hoops, not that there would be many but they don't want to come out of pocket for b.s. repairs.

Ive seen a lot of houses in Newark, I doubt your $30,000 repair budget will be enough.

2 new bathroomsflooring throughoutpainting throughoutNew plumbing, likelylight fixtureswindowslandscapinggarage doorsinterior doors/trimExterior paintingGarage shingles (barely any pitch but still has shingles)Garage slab 1" crash down the middle.Misc framing, drywall repairs, backspalsh, etc.I will update the list as I am sure I am missing a few items and provide more pictures after the renovations are completed.My initial estimate was about 70k in repairs. 

The bank will most likely not give you any money for repairs.

My first experience was with garage door repair.

Plan on looking at all leases, all unit interiors to access any repairs that need to be done or any upgrades your strategy calls for. 

Is there likely a major repair that the seller is trying to hide?