The house is shared by the slip renters and gives themA kitchen bathroom and spot to entertain guests .

Depending on how much capital you have to place, I would entertain a small-multifamily property or a syndication unless you're swinging a hammer at something yourself (and skilled) in a value-add. 

Get to a large market area for jobs and entertainment in 20 minutes. 

Yes, a lender will not entertain a short sale offer unless the mortgage holder is in default and can show extreme hardship. 

Demand for housing is up because people want more indoor and outdoor space (not interest rates).As soon as manufacturing resumes 100% and people return to spending money on travel, dining out, and entertainment the material costs will drop.

If you really think that the seller is motivated and willing to entertain a lower offer, AND you don't think you are facing a lot of competition on these properties I would probably make an offer of about $90-95k. 

@Thomas DePaul 70% is going to be the standard from 9/10 banks but I have of one lending source who entertains 80% on mixed use purchases only problem is the loan minimum is $250k... 

I would repeat the process for any new adult living in one of your properties. 

Many areas have rent, fuel, utilities, and food costs that are up a lot more than 8% CPI.  18% of US adults in the September UBS survey said they lived rent free with other people during the last six months, up from 11% at the same time one year ago.

If you watch HGTV and think thats how a project goes , well its not , thats TV entertainment not the real world .