Obviously, their mortgage payments have been quite low, but our PITI payments will be roughly $2100/mo. 

If the value came in low enough you can still work on lowering the taxes, but otherwise getting credit for an extra bedroom per unit is a good thing. 

Need $25k repairs (estimate) and ARV is about $260k.According to 70% rule.. my offer should be ($260k x70%) - $25k rehab = $157k.Again.. the offer seems WAY too low.. and there is no way me (or my agent) should waste time putting together an offer.What am I doing wrong here?

The more you borrow, the higher the returns but the greater the risk.A 50% mortgage would provide far better returns than paying all cash and it's extremely low risk.

I would also increase your vacancy, capex and repairs # at the minimum as they are very low.

Code requires you to have an ancillary heat source - ours typically fire during 2-3 weeks in the dead of winter when overnight lows get down below -30C and the daytime highs do not climb above -20C.

Even if my finders fee are low.

I always recommend standing out from the crowd by providing your investor buyers massive value and good, accurate data.  

we are seeing prices peak in the Portland market the big run up has happened.. but sales are still brisk and your right low end is still on fire.. my wife put a 250k condo in escrow yesterday.. but we were lamenting it took 30 days to get it sold instead of 30 seconds..

He built them with low maintenance materials and just recently refurbished 1 of the duplex buildings with a new 40 year metal roof, new water heaters, refrigerators, dishwashers, stoves and AC units.The 2nd duplex still needs to be refurbished but is currently rented, so this gives the option of forced appreciation.