Save for 7-8 months and get my 20% down of 10k on it and go to a bank which isn't my favorite option or maybe since I was reading on here that life insurance company's have a very low interest rate and like to invest in multi family buildings that would be another good option.

it definitely helps make a good decision.

I haven't made any decisions yet. it's a bit small but it was move in ready.

I already made an offer on this Duplex and waiting for the Seller's bank to make their decision on this short sale.

Made any decisions?

You could go to Colorado Springs with the money and buy a 4-plex and perhaps get more cash flow (more management too).Good place to be to have tough decisions like this to make.

If you talk to her and say, "You know, I think it's probably worth $175K after it's all fixed up, I think it will take me $60K with with all the known and unknown work, plus 6 months of my own time (@$4k/mo), interest on the loan, insurance, permits, etc etc, so subtracting that from the final value, I can offer about $50-60K." 

Stuff just got real.First thing I did was insured it.Then I hunted and found someone to do the title work.

If it IS a separate bill in your area then yes, definitely include it as an expense, and the 'other expense' category would be a good place.You want to include ANY expense you might incur - I was watching a webinar last week from the archives and it was interesting how a couple things that I dont deal with; flood insurance, garage & water/sewer (tenants pay in my area) completely changed one of Brandon's deals he was looking at from pretty good to just break even. 

You have to take full advantage of the seven years you have until you'll have to start paying four-figure sums monthly for your own health insurance.