Several reasons: market rates, cost of operations, risks of the tenant in particular, rental history, turnover potential, loss of rent during turnover period, "hot" or "cold" market, etc.

@Sean Conroy, this really depends on two things: first, the land zoned in a way that you can subdivide and build more units (question for building/zoning department) and second, financial returns on doing this versus using the capital to buy.New construction certainly has its advantages on the operating side, and can often get a premium to remodeled, older units.  

@Rick Albert assuming that in your situation you and your investor are owning/managing these as purely investments and thus holding everything via a partnership operating agreement?  

My husband has 15 years of experience in Operations.

They are one of the very few MFH operators who have a long track record.

Using an attorney, CPA or a 3rd party as agent is smarter.2) Having an Operating Agreement---Without one, you don't have a viable LLC and highly likely a judge will set it aside.3) Buying a property in your name to get a FNMA/FHA/VA mortgage, then transferring the property to an LLC via QCD. 

While the repairs will temporarily affect rental operations, the long-term tax advantages from depreciation could help recover some of the initial financial outlay.In terms of negotiations, it would be wise to push for a larger price reduction instead of accepting a cashier's check, given the magnitude of the repairs and the expected loss of rental income during the downtime.

He's also a very good operator from what I've know and seen as he does share content online (walkthroughs of the aftermath of fires at his property, etc).

Then right before closing, they ran the county records and said they can’t do a HELOC on a home I don’t personally own, and I would need to do a quit claim deed and put it back in my name to get the loan approved and then can do another quit claim deed to put it back under the LLC that it’s currently operating under. 

I have a list of maybe 15 note buyers and feel that if it's not an absolute deal killer, one will accept that they get the head of the note and my loan is 100% LTV against the tail.If you have to partial first to build a note portfolio that meets minimum loan amounts for lenders, then you have an order of operations problemThe only thing I can think of here is to write in the partial sale terms that I have the right to take a loan against up to 50% of the UPB on the note and retain the full right to collateralize it for loan purposes, as if I were the sole principal.