Also, what are some opinions on refiling returns to show less deductions in the form of losses, expenses, etc. and paying the tax difference in exchange for more buying power?

You might want to get an idea of how feasible/expensive that is while you are this path before you decide repair vs replace.         

This is a LOT of cash and there is a real risk of a loss here.  

Many states won't allow Landlords time to be charge, so that means loss of rent days and management fees to turn.

If cash I can only pay $120,000My reasoning on my numbersRetail $150,000less 4 months vacancy for prep and sell ($5600 rental loss)no realtor for me, don't really need theirs (3 to 6 %, 4500 to 9000)repair to showing condition savings, staging (at least paint $3000)I am saving them between $13100 and $17,600 on costs plus time $$$That is why I am targeting $120,000 purchase price. 

What if the business is not producing, or actually generating a loss? 

Perhaps moving the laundry may not be feasible though.

If you can purchase the home at a real big discount vs market price then it might be feasible.  

That way if any deal goes south, the loss is only a percentage of his total.

I would think you would sell if for a small loss and move on.