Anything makes sense if you can figure out who's willing to take the haircut or make up the difference.

Haircutting transactions above and beyond whatever restrictions are put in place by the GSE's.- Decreasing appetite for cash out refinances, high leverage, interest-only, and peculiar deals (scattered site, low liquidity, nonlocal sponsors)- Mixed-use deals having their retail income underwritten at $0 unless big national credit tenants.- Falling collections at properties playing hell with deals in process. 

Don't worry, I'll get a hair cut and shave this weekend.

If all these numbers are true, and they don't have any other assets, they should probably seriously consider some kind of financial restructure or a default, unless the bank is willing to take a $45K haircut.

And even then, I really really messed up my first several purchase attempts, and it's only by luck that I didn't take a bigger haircut that I did.  

Wholetail with plexes usually means getting a turd or 2 out and a haircut on those units.  

"Significantly less" is rather fluid, but I've found that a 5% to 7% haircut on a short sale scenario vs a foreclosure scenario (according to my own horseback calculations) gets approved.

IF the property was in such great shape and has such good cash flow - why did the seller take another 20k haircut on a lower priced property? 

You may need to take a hair cut but once you compare the cost of individual exchanges at $700 - $1000 a pop, the cost of separate closings, or the cost of a reverse exchange at an additional $3K - $5K and a discount to simplify your transition might not be such an onerous thing.2.

Lot's of time restrictions have to do with parking spots used per tenant.Dental and hair cut shop tend to be strong performing tenants.