By which I mean there will be free national websites for commercial  like Zillow or Trulia where you can see everything people are offering for sale and what they're asking, Sort of like CREXI or Loopnet or the one that was sued out of existence but more complete and comprehensive.But I don't think that will stop the 'pocket listing' process because that happens today in residential with really sought after properties.Nor do I think it will diminish the value of a really good commercial broker.When Zillow/Trulia/Redfin all came out people predicted all of the RE agents would lose their jobs and no one would ever pay a real estate commission again.

@Jason Hartman, I've never heard of such a regulation but if it does exist (I assume it does if multiple financial institutions told you it does), would they be okay with you buying a property with another loan, cash, HML or private investor funds and then use the HELOC for the repairs?

Unfortunately, we've been self-employed in a non-real estate industry for a LONG time now and we couldn't document our income in a way that was sufficient for our lender - so we did a cash deal instead.I thought the equity in that property and in the home we own outright (about $256,000 in total equity) would be enough to reset the conversation for our next deal, but our lender says existing equity will always be overshadowed in our situation by documented income (or lack thereof.)  

The owner will allow me to assume the existing loan of $150k.

It is an acquisition from existing owner. all retail outlets are leased out for next 4-5 years. 

Not that they don't exist and "fortunately" the Sacto area still has some volume.

The village the house is located in requires an occupancy inspection prior to sale, when the inspector viewed the property, they issued a non-occupancy permit for me to sell the property, but they also want me or the next buyer to pay for 3 permits and fines for work not done without a permit totaling 1k.Several investors talked with the village inspector and they reportedly will work with the next owner to resolve the permit issues without forcing them to tear out the existing work.

can you subject to / take over their existing mortgage?

Also, they had never before mentioned her doctor was "out of town," they merely stated the letter already existed and was "on its way." 

In my opinion the cost of an existing structure and the rehab cost are phenomenal - might be more profitable for a simple house with rental quality materials?