I'm not saying it's good or bad so there are some practical things to consider.

In more astute owner/property manager interactions, the contractor will be TOLD to decrease their price ASAP or the contractor would be terminated for any future consideration.I would most definitely contact the contractor to get the low down as to why it is more, since the property manager won't do it.It sounds like since you are doing a la carte service as opposed to full service, you are getting some bad answers from the property manager. 

We have zero bad debt and 800 on credit scores, but maybe that doesn't matter for these kind of purchases?

A good property manager can make your life easy, a bad one will lose you money on your property.4.  

Also if it is a bank overlay and there is a bank who will do it in 6months is it a bad idea or frowned upon to go to another bank in 6months.

Steel is bad and is probably already causing issues in water flow and pressure in the duplex.8.

Even then, you have things you can't decipher without actually going through the property (bad/good floor plan, tiny/huge/awkward layout bathroom).

Seller financing comes in when the seller doesn't have enough equity to hire a real estate agent, or doesn't want the hassles of fixing up the house or needs to sell right away and doesn't have a lot of choice.

The credit score and down payment requirements are substantial and the rate sucks but if it's a good enough deal you don't want to lose it over a bad rate.

Better not be a bad neighbor to @Chris Tejirian :)