Investors are particularly interested in properties near major universities, as they offer stable and growing returns.

It sounds like the Seller does not want to commit until he knows the deal will go through, and until that time, he wants to be able to entertain other offers. 

I live in California (Central Coast) and have built a 12-door portfolio in Detroit, which has been a great market for both cash flow and long-term potential.Detroit still offers properties well below the $150k mark, with strong rent-to-price ratios and a market that’s seeing growth in key areas.

Offer discounts for applying in a short time period or- offer a free application fee. 

Larger cities offer better infrastructure, such as international airports, interstate highways, and a broader talent pool, making them attractive to businesses and tenants.Avoid Rent ControlRent control laws can hinder your ability to adjust rents to match inflation, limit tenant screening, and complicate evictions.

As MFH is dropping there shorts to get and keep full occupancy, offering every spif imaginable, larger units are to accommodate families of size or multi-gen living is a rare inventory. 

What should I look for before making an offer on a property like this?

Here are my responses to your questions1) Not my area of expertise, but the numbers on this are very strong2) I'd generally lean towards building the CFM, but strategically selling some properties when someone gives you a offer you can't refuse.3) Most HMLs would lend you 75%-85% of your purchases prices plus up to 100% of the rehab costs (though some HMLs like to see the rehab costs at or below the purchase price).

The property offered a balanced investment opportunity—enough to significantly enhance its value through renovations, yet manageable in scope and cost.

So, not really passive.Investing in rReal estate offers a lot more control than investing in stocks, but it also requires an investment of time to do well.