I am almost ready to put in an offer for my first STR in Big Bear.

I have a nice down payment as was gonna offer a potential subject to if i paid their profits/ closing costs...but can you subject to a loan not in bad standing/ FHA?

All the book examples out there seem to only point to making cash offers on deals found this way.I realize that if it's too distressed, a bank won't lend on it and other financing will be necessary (hard money, partnership, private lenders, etc).

If they have friendly regulations, it typically means the area has something that would attract tourism of some sort, but that may not always be the case.

I wouldn't likely/necessarily be mailing a lot of letters for example.But mainly, I would pay for a service that offered me the closest thing to an instant/on demand "preliminary title report" , that is something that greatly "simplified" initial research, preliminary only of course- based on apn.

If we find that the well and septic need replacement, are you willing to negotiate on an all-cash offer?

Standard down payment for a new primary mortgage typically range between 3%-5%If you need the rental income from the home you are departing you typically will need a fully executed lease and proof of 1st payment and security deposit

My question is, typically do banks lend on primary/investment properties with such a high price? 

Typically, distressed properties literally sell for Market Price - Expected Rehab Costs, so any equity gained is mostly sweat equity.

We had initially presented them with a 6 month lease, and after hearing they would like to move we offered a 3 month lease which again they refused to sign.