If in fact after all of my due diligence I uncover the property is not the best fit for me presently, I also work with other buyers in this market who will be interested in picking up the property for themselves.  

Many people have misunderstandings about money rooted in flawed concepts such as, "money is the root of all evil" and "money doesn't buy happiness."

If you can uncover that reason and incorporate it into your offer, you're showing them far more value than just your offer price.

IE get investors to buy the homes and then become the sellers with a profit split.. with the nice idea that the homeowners or buyers are going to go into credit repair and buy the home in 12 to 36 months..But that model is internally flawed and does not work.. the amount of buyers that are sub prime to start and can fix their credit to become bank able is minute and its simply a sales pitch.. even the guys pitching probably believe it but when one has any amount of experience in the space you soon come to realize that sub prime buyers should just stick to being renters..

There was a lot of deferred maintenance (subfloor damage, gutters needed replacing, etc)  The more I uncovered things, the more damage I found. 

Downside risks are here though - if there flaws in the appraisal or there has been a downward trend in sales prices.

The biggest flaw in City Center, in general, was it was built an idea that an person could live, play, and work while living either at Veer, Vdara, and the Mandarin.  

The only thing that would turn me off of your situation would be the age of the house and the possible problems you could uncover.

Now, after 6 weeks, I just found out that for the last 3 weeks she has been badgering him to marry her and getting upset that he was resistant to this idea (as if she has any right...)Obviously, the tenant screening process was totally flawed.

However, projects that scratch below the surface may uncover damage that has to be fixed before continuing to the actual planned improvement.