Add risk tolerance of the principal(s) involved, and the answer can be worked out.

We did consider/evaluate that option, and have done multiple flips, but at those points have been under contract since New Year's Eve and carrying costs for another 2-3 months without a guaranteed sale is not the risk we want to assume.

There’s no one answer, a lot depends on the investors personal financial position, tolerance for risk, goals, etc.  

Talk to the seller, but options are to cancel the sale (and risk losing your deposit), renegotiate to lower the price to allow you to fix the problems or ask them to fix it. 

What are the risks?

If will be more work for me which I am willing to do but is it worth the headache and risk ?

********************************The basic idea is that of you can make the same return on Treasuries with little to no risk, there is no incentive to buy real state.Some very large Hedge Funds are selling inventory at a loss, below what "current market" is.

However, I disagree with your comments that the investor buyers who buy these homes have a greater appetite for risk and know the risks that exist.

Put 2-3 markets overlayed over each other and you can easily see which market is going to be a rollercoaster ride.

In the lease termination, state the legal reason (compliant to Ab1482) for the lease termination and also state the that they will be provided one month rent at move out (AB1482 dives allow for GP forgiving the last month’s rent, but this has more risk in condition tenant does not vacate).