Will,I am seeing lots of games being played by the agents that "represent" the banksI am looking foreward to seeing them on the other side of the cycle.

Let us know the results of your LOI offer and if the seller counters or not.NEVER let the seller simply state to you, "make a new offer/LOI and resubmit" Tell them, "please send me a written counter offer"Sellers telling you to resubmit a btter offer are playing the game with you, turn it around and don't them them win that game.

One thing they did was fake occupancy by having radios playing in vacant units! 

I would build in a buffer for taxes to play it safe.

It was a hard decision trying to decide which way to take this deal and ultimately decided to make a long-term play on it and keep it, I think I will thank myself for it in the future. 

I have been playing with the idea of A cashout refinance ( to make them commercial), but I am also weighing the option of buying using a commercial mortgage now and doing a sale to access equity later.

Option #2 sounds like a long-term play where you may be betting on appreciation in those markets. 

he is looking to finance for some cash out to build a branded hotel on it.   

If you already have a good w2 or business to eat and live on, it's a great long-term play, especially for part-timers. 

It would be nice if all listings (via MLS or fsbo) received a fair shake with agents, but true that not all listings are created equal and no doubt implicit bias comes into play for all parties.