@James Hamling. It is the process where all cash can win a great deal. Recently we purchased a duplex with two 3/1 units with a split basement, tenants pay all utilities. The owner had owned it for 4 years, had put work into it, but never managed it properly.
The city had done their 3 year inspection and found a moderate number of violations, including some safety violations which needed to be corrected in 10 days. The inspector came back in 10 days and couldn't even get in. The owner was ticketed.
He put it up for sale for $150K.
My analysis said it was worth $147K to me. I made 2 offers. A. Seller finance a $145K price for 5 years with 25% down. We would assume all repairs and take over management. B. $130K cash, 48 hours to do inspection.
My agent tried to get us to come up on the cash offer, I said no. The seller accepted a full price offer contingent on financing. When they asked the buyer to show them the 25%, he couldn't.
They came back to us. We bought it, had it re-inspected by the city, got a more reasonable inspection, and finished the work we wanted to do forn$22K.
Now rented for $1200 per unit, appraised for $205K, and refied for $150. Cash can work.