Around here most investors seem to be ok with something around 0.5% but I stick to searching until the right deal comes.

Odds are you will lose your EMD if you back out, which may be a better option than sticking with this deal (depending on the amount and how it impacts you financially.)

Many investors stick with traditional financing methods without realizing the impact of fees, slow approval times, or rigid terms that may not suit their investment strategy.

Are you sure its a true log home and isn't just a stick built home with log siding and tongue and groove on the inside? 

Many tenants abuse free utilities and stick their landlords with the amounts that exceed what S8 pays.

Why should I stick to REI?

There will be good investments to be made for several years and investments made today aren't going to hockey stick like they did in 2020-2022 so you have the luxury of time as you wait for the best opportunities from the best sponsors.  

Or would it simply be better to stick to my original plan and just go out of state?

In my area , you would have a minimum of 1 year from the time you bought the land until you could stick a shovel in the ground .

Lenders don't like condos.I totally agree with checking on non-warrantable, but these appear to be lots with stick built cabins.