So if I were in your shoes, I would definitely have no problem taking applicant 2 and telling applicant 1 that its already taken.Better for you that you make that call than for you to wait and then them tell you they can't make it and applicant 2 tell you they've gone with another house.

Taking into consideration and putting myself in an investor's shoes makes me understand how they think and can render pretty valuable inputs.

Have any of you guys been in our shoes before? 

If I were in your shoes, I'd pass.

When I think of owner financing, I put myself in the sellers shoes and think that they wouldn't want that and would want their money upfront, so I already rule that option out in my head.

I would to use the money to invest in these shoes that are coming out soon.

How would you approach this in my shoes?

@Kevin Gerace  you may want to put yourself in their shoes - They are probably only in town for a limited time and feel they have to do the clean out - which they have probably been gearing themselves up for for years!  

We've been in your shoes.  

Obviously I can't tell you definitively without seeing it but If there is only water leaking when the tub is running and at no other time you are likely looking at bad putty or rubber on the drain shoe, possibly a leak in the trap or drain, or it could be a bad pipe going to the tub spout or shower riser.