Joel, i think the immediate reaction for a buyer is not to believe the agent since the agents generally want to do as little work as possible. i am the same way. i asked him to put me in touch with a commercial mortgage broker and he said the guy he used to work with is out of business.so i can't even confirm that what he is telling me is true.james, how do you find those deals?

We could no longer raise our rents more than 3% per year.We did EXACTLY opposite of what would have been the right reaction.

Their reaction is the complete opposite and they happy are that the transaction closed and we did what we said we would. 

It might be different state by state, but my initial reaction is that you cannot have a tenant paying for any "common" utilities.

I thought I did a good job of rebounding after my explanation, but overall, I was disicouraged by the seller's reaction. 

I will admit I am worried that 1 non-paying tenant will turn into 3 depending on the 2 other tenants reaction and would appreciate any advise on how best to navigate that.

What were the reactions of the homebuyers?

Not to mention I was  nervous  I felt somewhat humiliated by his reaction in front of the other investors.  

You will get the kneejerk reaction of getting automated emails from the MLS.

When she doesn't get a reaction from you she will probably start focusing her attention elsewhere.