These sellers typically want a fast sale to move on with their lives and avoid ongoing conflicts.Relocating SellersPeople who need to relocate for a new job, military deployment, or other personal reasons often seek a quick sale to avoid the burden of managing a long-distance property.Inherited PropertiesHeirs who inherit a property they don't want to maintain or manage may be eager to sell quickly.

Instead, they just focus on growing wealth and deploy a few hundred thousand each year and every year with the right syndications and wait to see the returns in five to eight years.

Is there a better way to deploy such capital and yield better ROI in RE?

@Edison ChadwickThere will be cash flowing deals you will have to deploy more capital to see cash flow. 

How are you planning to deploy that $200k? 

best terms are from national firms that have hundred of millions of dollars to deploy and who lend in 50 states.

It'll be tough to get into a pure investment in your area for 35k but here are a few options:- partner on the second deal- if the numbers make sense and you could get more cashflow then you could look at a higher price point but my guess is this will be difficult to find- Buy your first property as planned, and save the 35k as reserves and/or just keep it for the next down payment on another FHA after a year- find a place that needs some work where you can use that money to fix up and force appreciation to the propertyPersonally, I would look at those last 2 options where you have the cash on hand ready to deploy for the next down payment or rehab costs if needed.

And, of course, it doesn't stop compounding once you do deploy the capital for said deal/opportunity.If you're not looking to buy real estate or do REITS (assuming LP syndications are a no-go?)

You then look at what a $72K post-tax net return is relative to the initial amount of capital deployed and determine if that is a good enough return to justify the investment.

Based on your time, energy and capital you have to deploy will dictate where and what strategies you can use.