Plus I don't want to be in the electrical selling business, that includes no hookups to recharge electric cars.All I want to do is provide housing and collect the rent.

Seller has decided to walk with our EM and put the house back on the market.

For example, I live in Gilbert, AZ, which isn't exactly the cheapest place to live, so if I begin to look for a house here in AZ are the lenders going to want to see 300k-400k$ in liquid assets for me to get approval for a mortgage (as the homes in my area are around 800K-1M)? 

I can't house hack because of the family situation so I can't be approved for regular loans that require you to make the property your primary residence. 

Just a different takeNow this is not to sayPS - those houses that were priced way too high and languish?

Try to setup an appointment with them.Ask the top agents in your office if you could hold open houses for them. 

There may be a couple of houses on the block that do not have driveways so this may not be the only one.

The city has already approved the permits, and the cost to rebuild the 1200 sqft. house is estimated at around $120K.

I am considering buying a property in Spokane that includes two separate housing units. 

Improving grading or having downspouts drain into pipes that move the water away from the house often solve the majority of issues.