In order to lock in the money the buyers need to have their new home under contract. 

What is the buyers market for these neighborhoods? 

Then I plan on selling it through contract with seller financing with a higher price to another buyer after rehabbing it and adding equity. 

I know there a lot of different names for this strategy including Land Contracts and Installment Sales Contract but my understanding is that the seller retains title to the property until the buyer, or investor in our case, pays off the loan amount agreed upon.

We al ways add language in the contract that the buyer/seller is a licensed agent but you likely have to disclose in writing Before that point.

If you are looking to by, buy in a buyer's market. 

also what would be the price that may be worth to you if you were the buyer and making an offer ?

Other than that it’s really not that different from a non-short sale purchase from the buyer’s perspective. 

It burns up my buyers emotional equity. 

Caveat Emptor is Latin for Buyer Beware.