Lender on the second had the other auctioneer (from a trustee company they do business with) show up to acquire the property - unless of course there were competing bidders that would bid up to a predefined point where the second got some or all of their money back.

@Seth RouchI picked up on 3 things in your post.Out of state (this doesn't matter)Assets (I will get deeper into this for you)Non Warrantable (This is when the HOA or all the units are 50% or more rentals)The rule for assets just changed on July 26th and instead of requiring 6 months of reserves for all investment mortgage payments.

Many are missing most or all of the financials.

This is why the agent said that the seller's $3000 offer will stand, because your "counter" is only an oral offer and hasn't been put in writing.  

That low appraisal would only affect other FHA buyers or ALL buyers (besides cash) would have to have their lenders use that same appraisal?

@Ross Denman Fresh new face to the investment scene and would love your recommendations on a License Inspector as well in the Indianapolis realm more specifically near Shelton Heights any or all help is much appreciated. 

Do you use hard money, or all cash for the purchase and rehab, then refinance through a traditional lender?

The total cash invested is how much money you still have in the deal after you've been able to refi and pull some or all of your cash out.

I think a w/d  is really a big plus or all families and people really need and appreciate a w/d and some people would never consider renting an apartmemnt with out one.     

Most L/O deals put some or all of the repair/maintenance burdens on the tenant/optionee.