Typically when you see "cash only" the agent doesn't believe the property can pass a home inspection which isn't relevant for construction loans in most instances and there are plenty of banks, hard money lenders etc. who offer construction financing on distressed buildings.

You most likely have more experience, plus you're much closer.

No charge for inspections my Banker does the inspections then we have lunch LOL..

Certain neighborhoods will have what's called a POS or Point Of Sale inspection.

Marketing, screening, collecting rent, unpaid rent, maintenance, capex, insurance, lawn care, vacancies, turnover costs, inspections, and so much more. 

My rate will be closer to 9%.

These problems often occur in vacant homes due to lack of ventilation, climate control, and regular inspections.

I had told him that, like with all other payments, the work would have to first be inspected by myself and then the lenders agent who inspects.

Close with asking permission to informally inspect the property to see if you can make your vision work.

Not sure if you’re closer to Randolph, Lackland or Ft Sam Houston but this also plays into account on what rental amount you should look to achieve.