They do seem possibly open to seller financing the difference of $172K.

As a license agen, you will have a fiduciary responsibility to tell sellers what their property is actually worth. 

The inspection showed more issues than we expected but the seller wasn't willing to negotiate so we cancelled in the due diligence period.

The seller requires a cash purchase & I’m exploring creative ways to structure the deal.

After winning the bid I had to provide 5% of the price as earnest money within 1 day of the seller countersigning the contract.

One, you might want to consider Seller Financing (in Michigan, we call it a Land Contract) which can allow you to buy property while using the Seller as Banker; not all Sellers are open to this, but it can be beneficial to both the Buyer and Seller.

About 5 years ago one of the sellers we bought a multi family from told us about a company that has a lot of landlords like us and we coshare insurance coverage.

I'm not familiar with your market, but here are some thoughts:750 Sq ft is small for a 3/1.Interior looks like a flip but it seems like it has been owned by the sellers for a long time...so maybe not.They have been trying to sell this property for 6 months and have reduced price. 

However, the success of this approach hinges on consistent appreciation, which depends on demand.The Key Factors to ConsiderPrice Dynamics: Prices are driven by the balance between buyers and sellers.

So, if interest rates are a buyer’s primary roadblock, then I recommend negotiating a rate buydown at a seller’s expense or looking at new construction, where builders are offering rate reductions and other substantial incentives.What if I’m a seller?