In my own situation, we went a long time without insurance.  

On the other hand, a detailed quote with a higher total may offer more transparency and reduce the risk of surprises as the project progresses.I specialize in consulting services for situations like this, where I help clients evaluate contractor quotes, ensure transparency, and navigate the renovation process with confidence.

But if you have a cash buyer who is specifically looking for income property, and even more specifically a vacation rental property,  I firmly believe that there is a value add from having a working STR there.

It could be some sort of skill set for renovations, design for furnished rentals, specific market knowledge, owner occupied loan products for a house hack, etc. 

Sometimes things just happens and if you can walk away with a little gain but get out of a problem situation you call it a good day!!

However, this could also portend our own situation in a year's time if we take them. 

What are things to look our for in this situation?

One more thing, especially for people who don't meet my criteria, besides more deposit is required, I also do a interview with them, not interrogation style, more like a friendly conversation to figure out their situation.

But in this case what is the difference from the buyer prospective, other then they are getting a better loan/ equity situation then conventional financing?

Any specific events you are referring to?