For sellers multiple offers is still happening but I have buyers getting deals 5-15% off asking so it varies. 

I need advice or assistance on how I should go about this Bundle Deal of distressed properties I just came across.The bundle includes 13 properties (all single-family) that all add up to $407,150 and all but possibly 2 are not in shape to be rented out and would need rehab done to it.

(Not before) The time spent before the property is under contract such as analyzing deals, doing negotiations, research, education hours, traveling, etc do NOT count towards the material participation hours.

I agree with your thesis...deal flow IS real estate investing.Baseball is good training for REI...takes discipline and persistence after adversity. 

Many of them are easy value add deals where the rent is under market value and there is a cosmetic rehab needed.

However, I strongly suggest to seek a structure engineer or architect/drafter that guide/help you on planning and dealing with zoning permits as well.

I want to buy the property on terms and demo, build a new house.I want to structure an owner finance deal with him where I either pay him interest only on the lot or no payments for 18 months (or until the new house completes and sells whichever is earlier). 

Exactly what I am looking for right now...is one video/one 1, 2, 3, 4, 5 page document to walk me step by step to close a first deal. 

Happy to connect as we see a lot of private lending deals that we pass on to others

Typical deal I see will probably need 30-40% down to break even or cash flow.