Some numbers that I have come up with that I think will make it meet my criteria for being a possible deal are as follows:Asking price: 37,500ARV: 68,000Rent: $800Cash flow: $378/monthIf I can keep the rehab costs under $15,000 I think it will make my all-in price at enough of a discount that I can make the deal work. 

It will contain a page of "standard exclusions" which are probably fine (things like utility encroachments, future property taxes, etc).

Then multiply that portion by 250K to get an exclusion amount on my taxes......

I don't know the numbers, but it looks like you are buying it at a great discount so it might work out. 

Most banks are not set up to own homes, and are often motivated to sell you the home at a discounted price."

With a FSBO you're going to have to get it at a pretty substantial discount below what he has "listed" for.

Unfortunately, being out of state means I can't always buy at a steep discount and forced appreciation isn't really an option.

My mom is  a retired paralegal, and worked exclusively with real estate attorneys for 15 years (sweet deal, hey?)

We're getting the first duplex at a discount now since they want to be done w/ the showings and the ups and downs of selling.  

The cool thing about buying properties at a discount and rehabbing/renting before the refinance (BRRRR) is that there should be a good amount of equity built in, or forced rather, during the rehab stage.