For instance, if there is a cap on fees chargeable for a given task (such as you cannot charge more than $10 to produce a newsletter -an actual term from one of the Uniform Acts floating around out there), make sure that your proposal does not violate that.  

In your example, you are proposing to negotiate a purchase price lower than the appraisal value, and then after the sale put new debt on it with the higher appraisal value thus taking cash out from the new LTV? 

If the numbers make sense, you could propose a sub 2 deal and still offer to pay the agent their commission, pay the seller for their "equity" for the grant deed. 

@Shawn CrawleyHere's a general overview of the deal process: Find a Prospective Rehab Property Perform Quick Analysis to Determine if #'s Make Sense to Walk the Property Perform Initial Property Walkthrough & Inspection Create a Detailed Estimate of Repairs Analyze the Maximum Purchase Price you should offer for the Property Make an Offer / Negotiate Offer with SellerAfter Deal Acceptance Develop detailed Scope of Work for contractor proposals Establish Inspection/Contractor Walkthrough Date - Try to have everyone show up on one date & time if possible Solicit contractor proposals Receive contractor proposals Make go/no-go decision to purchase the property

I found several turnkey providers that appear to have great property management, but will only manage properties they sell you and  found their prices to be a bit unrealistic for the neighborhoods they were proposing.  

Here's a link to the application so you can see what's involved.http://www.co.maui.hi.us/DocumentCenter/Home/View/79193There has also been recent amendments proposed to the County code to require ownership of the home for five years prior to application to prevent "newcomers" from buying property and turning it into short term rentals.

Create the Fix and Flip Proposal.  

I have been renting this place from the seller, he finally agrees to sell it to me, so I proposed we do this by owner and through our attorneys.

I'm crunching some numbers and would like to propose to my mother-in-law who has already allocated in her estate plans to gift our two daughters $30K each (x2=$60K) for their college education.  

I believe you're looking at wholesaling the lease/option, and if so I can make some recommendations regarding deal structure and paperwork.That said, I'd also propose you strongly reconsider agreeing to pay market value and also be very careful dealing with townhomes/condos.If you're game, I'd love to hear more about the deal.