ARV is conservatively about 95k to 100k, repairs are about 10k, maybe 5k if I do the easy stuff myself.

Does this mean that I should have a contractor estimate repair costs anyway, or should I trust the estimate provided by the HUD agents?

There are more repairs with an SFR than a condo in general, particularly if the property is older.

Some major repair is needed is my guess. 50% off is a huge difference.

You do need to put down some money for the loan(3.5% down payment, mortgage insurance premium and closing costs) What we are talking about are any funds that I need to use directly for repairs.

The home is vacant and in need of repair...

You might get the $5-10k up front as a down payment but that could be eaten up by these repairs/lost rent.In the long term you might make a few more bucks, but the risk is much higher and you have a downside to potentially have to put cash into it to get rid of it, whereas you know your downside with the wholesale deal is $0 if you don't close it.Also with the new Dodd-Frank rules in effect, make sure you understand how those might affect lease options before you jump into one - there are many well researched threads on BP addressing DF right now .

Estimated cash flow around $1000 per month after assuming 5% vacancy, 3% cap-ex, and 5% repairs.

My partner and I are trying to figure out how to buy a 2-4 unit property that doesn't need much in repairs using little money for a down payment.

What's the ARV, what's the seller want, how many repairs?