I've recently teamed up with a business partner who has complimentary RE skills and a construction background.

We are interested in doing some flips and new construction.

I work as a construction safety manager for Harvard University.

I typically take them at 70% of the purchase price in my underwriting. 

A lot is opinion based, but the data should point to a strengthening market, with low new construction deliveries. 

A successful short-sale typically benefits the borrower (homeowner) in the following ways: it can give them more time in the house (and payment-free); it is better than a foreclosure from a credit report perspective and wold allow him to obtain a new purchase loan for a new home in the future more quickly as compared to having it go through foreclosure.I would encourage you both to reach out to a local realtor with short-sale experience and have them facilitate the transaction, it would not cost you or the owner the commission as it would be paid out of the bank's proceeds.No, in a short-sale I would definitely not offer any payments to him directly that are not known and approved by the bank, you can get yourself in hot water and probably legal trouble by doing that on a short sale.

Typically they are going to give you construction loans at a much lower rate than hard money will.

If all of that checks, then I look for typical problem areas (sewer lagoons, poor markets, too many empty lots, etc). 

One of the projects that are underway with Akron and surrounding area, where the City of Akron are doing a Tax Abatement for 15 years, with residential rehabs, and new construction, 5k or more in repair. 

This is just more traffic and low income.The construction has already started.