And what seemed was good turned no-go, turned into a nice deal end of day.

Hiring a property management company with experience in the markets you're considering can be a game-changer.Have you identified which markets you want to invest in?

I work with out-of-state investors and would be happy to share my experience and how I can help you in your next investment purchase.

I have sent you a connection request too.I'm curious too - what did you end up doing? 

It didn't sell at auction, so not sure what they ended up doing with it....maybe tried again later or put it up OTC. 

I have been investing mainly in trust deeds but like you got connected with Dave and just recently ended up investing in his fund, my primary reason was for diversification and because it is passive. 

The information shared is based on my experience and industry knowledge and should not be considered tax, legal, or financial advice.

If their underwriting doesn’t match how the market treats these properties, then they’re using the wrong framework.If they won’t budge, see if they’d accept an appraisal from someone with experience in townhome valuations instead of treating this like a multifamily asset.

Does anyone have experience doing this?  

As others have noted, it would be a clear distinction to identify whether that person is a true end buyer or a wholesaler.I've personally seen someone sub-to a hard money loan and take over someone else's hard money loan (not assumption but just sub-to) so this is possible.