@Michele Armstrong is the complex warrantable(able to use low down payment for owner occupied).

With the partner involved I think caution is warranted. 

She had a warrant for eviction that was going to be executed in early March, at which time the courts closed. 

You need to determine what is the upside and if the upside warrants the risk.good luck

He has over 50 different investors, including several who can do non-warrantable condos.

She is a great tenant, never late with the rent and only complains when it's warranted.

The unit was under contract but it fell through because the buyer's bank/financing said the unit was non-warrantable and therefore hiked the interest rate up.

well, it doesn't look like a S-Corp is NOT warranted...Not sure what you mean by "SLLC," but yes you form say a Holding LLC at one echelon. 

We were aiming at doing in a live in and flip on this propertyHer offer was 12k above list price as there were multiple offers, our offer was acceptedWhen we viewed the property the home was winterized, and there was no power of water on.We really like the location, and planned on doing full remodel as the condo had a lot off potential.The utilities were turned on for inspectionWe just had inspections done and the HVAC unit was not working/cooling down the space, there were a lot of smaller items but the HVAC issues warranted further investigationWe then proceeded to get HVAC contractor specialist for further inspection and they said it could be repaired but since this unit was 2005 unit is is highly recommended to get a brand new unit as the reliability of the old unit and the repair is not guaranteed We have now decided that we would like to back out the deal while still in time period for inspection contingency, especially since we are offering 12k above list price, the new HVAC unit could cost in this range or aboveWhat's your thoughts on our decision, our understanding is that seller(bank) will not negotiate due to bought "as is" What are chance that they would accept a different offer?

I think purchasing a primary home might still warrant at least thinking about it a little.