It sounds like they had already recorded the first, incorrect version and will record a retraction of sorts if the demand is not met. 

But I understand there has to be a reputation and longer track record built up to get to that point.

They can call the city and report you for not having habitable units (no C of O or permits on record) and can refuse to pay rent and you wont be able to do much about it.

;-The Days on Market (DOM) figure for single-family homes dropped from 58 to 40;-Total property sales rose 58.3 percent with 11,348 units sold;-Total dollar volume increased 85.9 percent to about $4.0 billion;-The single-family average price reached a record high, rising 20.0 percent to $371,854; -The single-family median price climbed 17.6 percent to $295,000 – also a record high; -Single-family homes months of inventory registered an historic low 1.4-months supply, down from 3.4 months year-over-year and below the national inventory of 2.1 months;-On a year-to-date basis, single-family homes sales are running 24.4 percent ahead of 2020’s record pace.

What should I do, sell and cash out in this record high market, so I can buy a 4 plex to have more income and one to live in, or what and how? 

@Brian WareFind out who the owner (LLC) is in public records and then find out who the actually person is that owns that LLC.

One last thing its difficult to get any information on existing wells because most were done by home owners or the companies didn't record anything with the city.

Record the Warranty Deed.

Investors are getting more aggressive with their tactics to obtain properties, such as knocking on doors, sending out letters, and using data from court records just to find ways to get properties in the area in such a competitive market.

For example a lot of listings use county records as source and they tend to be off at times.Did the home appraise for your offer price ?