I tried to make a lower offer, but it seems the agent/friend is driving the deal, so can't really speak to the seller directly.

"I've got to level with you Ryan, He hasn't paid in 2 months." 

Traditionally banks loan on appraised or purchase, whichever is lower...you may be describing a hard money lender...that's a different ballgame altogether...It's impossible (in 99.999%) of all real estate acquisitions to use financing and acquire a property with no money out of pocket...best you could do is HML if you're flipping this...you may scrape by with points and fees...If you're using HML you will have to sell the property or settle the debt with a re-finance...re-fi's are typically 70% LTV...and completely dependent upon your personal financial situation, DTI...easy to get burned if you don't have capacity or the value is not there...and this is an expensive asset.A conventional lender can't lend if seller financing is involved...lending constraints...

List price just lowered $359,500. 

So if you purchase and rehab below X% then you will not have anything out of pocket...I mean, you'll have closing costs and whatever...but it will be lower than the conventional option which will require 15% down no matter what. 

Does anyone have tips/experience with finding information on a county level for where property are zoned for multi family?

Does anyone have tips/experience with finding information on a county level for where property are zoned for multi family?

@Anthony Wick That makes sense, refinance with a bank to lower interest and do a 30 year?

Are people just accepting lower returns or negative cash flow?

I would also add on that you should ask them what deals they have closed in the past and ask them for some details on those deals so that you can see what numbers they work with, their level of detail, and if their deals make sense to you, because as you will see in this industry there are a lot of people who think they can make a quick buck and have absolutely no idea about finding a reasonable ARV, repair estimates ballpark, and/or calculate closing/holding/financing fees that buyers will incur.Also, make sure that they actually have the original contract to the house if they're assigning it to you because some people try to wholesale other wholesalers' deals and it's a mess.