Because the 203k loan itself has a 10% contingency attached for “unforeseen” costs.

If you know how to price properly,  complete and adhere to standard state PSAs, contingencies, disclosures and addenda, open escrow and prove you are financially qualified to buy, go for it!

During this time, Kevin also had seen a property he would like to buy and had put in an offer to purchase which was accepted on Feb. 5th, the day an email went out to Cancel the original Contract.At the same time, the Mortgage Bank then closed the Application since there was no point in continuing as the Seller could not deliver Marketable Title and the Mortgage Contingency had expired.The Seller's Attorney stopped communicating with Kevin's Attorney.

@Julia ParslowYou are correct that the contingent deferred sales charge may not apply if you have had the annuity for a certain number of years; however both federal, and depending on your state of residence, state taxes will apply if you take a distribution. 

Your comps appear to be active listings not what has been sold.The margins are way to thin on this as the Holding costs will be a lot higher than 3k and closing costs probably more than 12k when you factor in taxes etc. throw in a 20% contingency on top of rehab and the deal is making very littleJust my 2 cents on how I would analyze it

Im able to get that unrepresented buyer to bid against themselves, get them to waive contingencies that no one represented by their own agent would waive. 

I would cover myself by making the offer contingent on property inspection.

Every contract is assignable, and expect him to wriggle out of his end of the deal using contingencies like "consulting his business partner".

I'm wanting to invest in a multifamily property somewhere in Western WA and the market moves quickly, so offers with sale contingencies are tricky.

Perhaps a contingency that says this offer is contingent upon him getting the tenant to agree to the lease terms, or maybe the owner will start receiving payments once fair market rents are reached?