BUT, the positive would be:+ Catagory A neighborhood with stable renters+ Betting on property value will increase over 10+ yr given the neighborhood+ Turnkey rental, leases in place till 2018Would these positives balance out the lower CAP rate?

I haven't ever put in offers lower than 90% of asking and often will offer more than asking if that's my best price for the deal.  

She was very stressed out about her situation which included divorcing a husband with mental health issues.

@Mike Bonadies...Cash flow properties in a house hack are tough due to the lower cap rate in the DC Metro. 

The main 1st duplex has been painted on the outside, the lower level has the new windows installed, both units have brand new high effenciency furnaces and a/c, which the upstairs never had duct a/c always window units.

If I own a primary home (State A) and then buy a second home (State B) as vacation home - thousands of mile away - and eventually move to vacation home due to my job change - is it possible to covert the primary home to vacation home (refinance to get lower rate - but that won't work because primary home already got the lowest rate?)

Personally I find that stressful; I want to make sure I have enough work for the people I employ because, obviously, people rely on their jobs to support themselves, so don't take that lightly. 

If he has the kind of equity he states, they shouldn't have an issue with doing this, and placing the amount owed onto the principal, and perhaps spread the loan term out to reset at 30 years, or even going to 40, which would lower his monthly payment, and lessen his burden, which is what I am guessing got him in the trouble he is in now.

So, the land comps must've come in lower than the $13K, or the other offer is being more conservative.The key is to make sure there is a demand for the land. 

This is where you can lower the price even further on them, because you have the leverage back.