Also there was water damage in the kitchen in the lower cabinets so they all needed to be replaced.  

If they don't want to prove they are who they say they are, why in the heck would you let them take physical possession of an asset of yours worth several hundred thousand dollars?!

I see that you are an RE Agent, keeping a positive reputation and more importantly keepin your license is far more importan than savinga couple of hundred bucks.

The home was bought 3 years ago at $208,000 and no large improvements have been made beside things such as newly painted cabinets and updated landscaping.

At this point, I can't even accurately tell if cabinets need to be replaced.

Its mid rehab and there are new cabinets, fixtures etc sitting in boxes that i dont want them packing up and taking right before we close the deal

That's not to mention the tenant headaches and fact that you would need to stack up 50+ cheap units each cash flowing a few hundred a month (which looks high on a percentage basis) to start to get meaningful cash flow going, which very quickly starts to resemble earned income from a job more than passive income from investment.

I do agree also a majority of question askers don't even get to making a deal even after barraging you with hundreds of hand-holding and time consuming questions.

Here's what I'm looking at:10 units 9 2bd & 1 1bdOffer price - $125k*Currently vacant*Needs roughly $60-80k in work- There is only sheetrock, plumbing, electric, and subflooring- I'll need flooring, doors, trim, casing, paint, appliances, cabinets/countertops, light fixtures, duct work for existing HVAC units, other misc. itemsI'm in the process of getting a few bids for the work, but it'll be at least $60k easily.Here's what I'm thinking in the way of financing:20-25% down, commercial loan (if they'll loan on a vacant property needing this much work..????)

It will cost her more to get a few hundred dollars out of you than it's worth.