@Ryan Ellis: If it is in writing, then follow the terms and conditions that were agreed upon. 

Property Condition and Loans - Use the bankWhen you are looking for a property I think you have two options.

However, until I have a property inspected and know the current condition and life expectancy of all major components and appliances I will not lower it.  

Higher profit is fine but you may be dealing with interest rate change, market condition deterioration.

You need to figure out what the ARV or Fair Market Value of the property should be if you were to Rehab it to like new condition.  

This property was kept in good condition, and the price reflected that, but we were able to negotiate the purchase price down to 124k.

The agreement should say they have to leave the property in good condition.

I didn’t find it in time.The safer option that will make me a less qualified loan candidate for a while: Quit my job, live rent-free for a few months (thanks Mom and Dad) while I get my real estate license, move to Denver (and rent), get a job as an agent, use my stash of cash to live off of for a while until the commission checks start to roll in, HUSTLE, HUSTLE, sleep, HUSTLE for as long as it takes to kill it and become an attractive loan candidate again.The yeah right option: buy a shoebox in the Bay Area that would force me to burn ALL of my free cash on a down payment then rent it out to (hopefully) cover the mortgage then pray nothing went wrong (Did someone say earthquake?).

ASSIGNEE accepts all terms and conditions of the contract for Sale and Purchase between BUYER and SELLER in its entirety.3.ASSIGNEE acknowledges receipt of legible copies of the original Contract for Sale and Purchase in its entirety including all Addendum(s) associated with this transaction.4.

I believe you can put down as little as 3.5% and even if you just secure a duplex, you could live rent-free (off the rental from the other side) and could save up faster for your next purchase.