A lender has no contract with a sub2 buyer.

It presents itself well like buyer offered over-asking, the interest rate is great and financing for a term of 6 years with a balloon at the end of the term.

@Brittaney Krischke - Go through all this and you'll be an expert wholesaler at the end (in theory; the practice is a whole different story):https://www.biggerpockets.com/blogs/7276/47735-the-ethics-of-wholesalinghttps://www.biggerpockets.com/blogs/5101/47691-wholesaling-tips-with-tic-tac-toehttps://www.biggerpockets.com/blogs/5101/47552-wholesalinghttps://www.biggerpockets.com/forums/517/topics/345427-white-paper-wholesaling-101-direct-mail-based-on-bp-postshttps://www.biggerpockets.com/blogs/6539/44228-wholesaling-is-illegal---no-really-it-is--at-least-in-my-statehttps://www.biggerpockets.com/blogs/4430/54368-guide-to-automatically-wholesaling-over-20-deals-a-monthhttps://www.biggerpockets.com/renewsblog/2009/12/17/wholesaling-houses-faq/https://www.biggerpockets.com/renewsblog/answers-top-5-questions-asked-aspiring-wholesalers/https://www.biggerpockets.com/forums/12/topics/586478-questions-to-ask-a-lawyer-before-wholesalinghttps://www.biggerpockets.com/renewsblog/2009/11/26/10-questions-investors-adding-wholesale-buyers-list/https://www.biggerpockets.com/forums/12/topics/588362-questions-to-ask-potential-sellers-for-a-wholesale-dealhttps://www.biggerpockets.com/renewsblog/2009/06/24/answer-subjectto-questions/https://www.biggerpockets.com/forums/93/topics/590614-what-are-the-top-key-questions-to-ask-seller-when-contactedhttps://www.biggerpockets.com/renewsblog/2008/07/30/the-single-most-important-question-to-ask-when-negotiating-with-a-seller/https://www.biggerpockets.com/forums/93/topics/588666-have-questions-on-wholesalehttps://www.biggerpockets.com/forums/93/topics/595659-wholesaling-advice-and-questionshttps://www.biggerpockets.com/forums/93/topics/601390-rei-questions-for-wholesalerhttps://www.biggerpockets.com/renewsblog/wholesaling-questions-answered/https://www.biggerpockets.com/renewsblog/2015/05/12/questions-about-closing-wholesaling-deal-get-answers/https://www.biggerpockets.com/forums/93/topics/591896-so-many-questions-about-wholesalinghttps://www.biggerpockets.com/forums/517/topics/595564-ask-me-about-multi-touch-direct-mail-campaignshttps://www.biggerpockets.com/forums/93/topics/603653-lots-of-random-wholesaling-questions-from-a-newbiehttps://www.biggerpockets.com/forums/517/topics/602974-138-leads-in-28-days-in-the-houston-texas-area-ask-me-anythinghttps://www.biggerpockets.com/forums/585/topics/608176-probate-leads-how-to-find-them

Anyone every heard of a realtor saboataging a buyer’s offer because they may have someone in the game with a lower offer that they want to get the deal?

Close of escrow is up to you (the buyer)..   

Wholesaling, you are going to be spending a lot of time building a buyers list, pursuing leads, buying lists, direct mail, cold calls and possibly door knocking to find off-market homes to get under contract, and then sell your equitable interest in that contract for $5000 to $10,000, depending on your market.Multi-family, you need to look at what you can afford, where you can raise money, an that will determine how many doors you are going to get (a duplex, fourplex, 8 unit, 24 unit..etc.). 

I'm talking start to finishAppraisal, underwriters, inspection, title search, etc...From a real bank for conventional loan.Hard/private money is faster which could be more likely for you a flipper...BUT if you're selling to FHA or similar it's going to be closer to 60 days to close on the buyer side...

Someone has to pay the price for these shenanigans.Prudent buyers  wont notice as rents will keep flowing.   

Of course that is a significant hit to the buyer/cost of operations.So I like your input as your numbers are closer to what I assume. 

Very often I have tenant buyers automatically thinking that the lease payment they make every month while the are living in the Rent to Own property while they are working on obtaining a mortgage loan goes toward reducing the selling price of the Rent to Own property.