I was able to reach an agreement with the Seller, but I was forced to complete due diligence including soil testing and surveying in less than 21 days which is very difficult in our market.

The DD process includes, but is not limited to, having a soils engineer prepare a soils analysis, an environmental engineer prepare a Phase 1 environmental report, market studies, title review, legal review, and zoning review.

While you can raise funds from other sources, bear with me for the purpose of this exampleNet Operating Income:  $74,194.00Annual Debt Service:  $62,632.32Annual Cash Flow:  $11,561.68Internal Rate of Return:  4.20%So if you bought this property even with the numbers they're stating in the pro-forma, you would only be receiving a 4.2% annual return on the $275K needed to put in to the property. 

Is the leach field in heavy clay soil and need frequent replacement?

Do you have any alligators, grizzly bears or wild hogs near where that company is located?

For properties up to a 4-plex size, the market cap rate has little to no bearing, because that's only used for commercial (ie. larger) properties.

Because the market will bear it, other similar had large claims, some problems on your property showed up during inspection?

get your bearings.

Any money that comes out of your pocket is a cost...and when that cost was being paid buy the tenant, that you now are paying instead, it's most definitely a cost.If you refi a property that you owe money on, you said your would be are paying an additional cash amount of $20k over and above the balance of the loan, that comes out of your cash at closing, that's a cost.As far as waiting to sell until you've paid off the loans (or almost), then you're losing money based on the value of the cash/equity applied to the property value.If you buy a $100k house, and put 20% ($30k) down, that cash (your cost...and only cost up to this point), is worth 5 times it's face value. 

I don't see how it has any bearing on the property you are talking about.Regarding the lien from the prior owner, you need more information.