If they made 18% +/- on the buy, they could actually sell for less than they paid and still not be in the red. 

I am a wholesaler in Charlotte, NC , I find properties primarily in Charlotte and I'm looking for cash buyers who don't want to spend all their time trying to look for great deals, I find them and always leave plenty of meat on the bone for you b/c my business only works when it's a win-win.Please PM me if you are interested in having me be a resource for YOU

Our lender also informed us that the biggest issue that raised the red flag and qualified the property to be in Below Average Condition is the detached garage which needs major repair.Our dilemma:Our lender gave us the option to buy the property all cash and refinance instead of it being considered a purchase.

The list has structural, lack of utilities, hazardous conditions, vacant and open and uncorrected red tags. 

You can message me at any time.  

Joe's brother-in-law buying Joe's house at a short sale would be a huge red flag for fraud.I think the biggest arrow in your quiver is #1, and your most probable path to success is to order a fresh appraisal with a fresh opinion of value, and once it comes back go to your (or the end-lender's) appraisal department (not the AMC, the lender's internal folks) and argue that the new appraisal is more credible than the previous one because of #1 ("if the appraiser didn't even go to the comps for a quick drive-by photo, who knows what else he didn't even actually do?")

Using that rate may be considered alright or it may be a little low and raise a red flag somewhere.

I think its three green houses can be traded up for one Red Hotel/Apartment.  

I am set on the existing red going to sage green to match the existing house.  

This is your red flag!