We would split the lot off and sell it. 

I would sell that property in IL and chalk it up to a learning experience.

A close-up of the stovetop or the back steps won't sell the house.

They just looking to bleed the investors so they are forced to sell.

If you're expecting property owners to sell their home to you at a discount, you'll need to earn their trust - whether that be by demonstrating a successful track record with purchasing/selling similar deals OR by meeting them face to face and separating yourself from the dozens of local investors and realtors.Lastly, I'd recommend searching past posts related to this topic as well as checking out books related to your target investment strategies.All the best!

@Deepak Malhotra When did you sell this property?

Your 1031 will have to be for the net selling price, not just the amount you clear after paying off any debt. 

Technically speaking a buyer and a seller being in a dispute on what happens with their earnest money isn't something that would prevent the seller from entering into another contract and selling their property to a different buyer. 

Then they would take the dryer back to the store and sell them a gas dryer I can’t see how this happens other than you trying to rent out a property with no dryer installed?

When you add rehab costs and effort, holding costs, and selling cost there is not much profit.