I agree about the comments regarding Crook County so we do factor in a lower purchase price to compensate for the added timelines and costs.I'm coming to believe and will continue to test out the following: If you have a highly competent attorney, you should be able to reduce timelines and generally mitigate the risks of investing in judicial foreclosure states.

I offered the seller 20% below asking price and they counter offered 12% below asking price and I accepted it because it was $1000 below my maximum offer budget amount.

My business plan would be looking to sell if the property did not produce acceptable cash flow based on a hypothetical 100% financing.

The well is in good shape and up to code and the current guy that is doing the water testing said that he can’t see it going dry but it did then i woule have to connect to the public water system.

Be sure and go through the course and do the cram test at the end until you can pass them. 

Can I make an offer on an REO, have it accepted, and then assign it to a buyer for a higher price?

He has basically two options allow buyers access or accept a low price based on an assumption that it needs full renovation. 

It may just be that the seller wants too much and there is no solution but I was hoping investors with more experience than myself in this area could provide some insight into how they would value this and how much of a hit to cash flow would be acceptable in exchange for future potential.The details:4-unit purpose built building in an average residential areaCap rates for 1-4 unit properties range from 6-10% depending on quality, location, conforming vs non-conforming etc.Asking price $520k, dropped from original $550k and has been on market for a few monthsRents are ~$34,000 and should be ~$48,000Expenses (excluding maintenance) are ~$9,000 - This puts the asking price cap rate at ~4.7% (not including maintenance)- We estimate that at asking price it would be about -$260/month in cash flow and break even at a PP of ~$450k assuming our typical 10% of rent for maintenance- We estimate the building would be worth around $530k at market rentsWe were thinking the cash flow neutral price would be our best offer, but their indication was that they are looking for close to 500k. 

@Craig SloanIf someone want to buy a property I own without what I consider an acceptable down payment and I’m financing the rest, I will try to transaction a lease purchase option.

In Hawaii the contract typically says something along the lines of "conventional financing at prevailing rates acceptable to buyer", which can easily be argued that the buyer can cancel if they do not find the rates/financing offer acceptable.