Try to play dumb. 

It's an ok deal and I would only bite if there is much more value plays such as potential for much higher rents after the rehab or things that can be done to the property that can increase the value or income.

Don't buy individual REITS as you are playing with fire. 

Is the title company's demand to get the docs "re-signed" legal?

By that time i expect the cash flow to play out like this:First floor unit: $1,400Second floor unit: $900 Three garage bays: $330Total expenses (PITI + 5% vacancy 5% repairs (1st and 2nd floors only)): $2,045Cash flow: $585 / month.

A lot more costly, but a lot higher demand / higher rents.

So I'll first lay out the basics of the deal... and then pose my quandary..... that felt like an elegant sentence lol. 2 unit building near major medical/college campus'Last 5 sales on street for similar properties- 3...

In Austin, I don't worry about my rentals because the low income housing sector is in extreme demand.  

Documenting and pushing concerns raised over health and safety issues is also a classic leverage-move played by scam artist tenants.I'm not saying the tenant's concern is unfounded, but tenants asking for over-the-top precautions is going to add substantially to your costs and timeline.    

As I'm sure you know construction is booming wait till it slows down....Plus is there even a demand for this in your area?