Generally, gains earned inside the self-directed 401k will accrue on a tax-deferred (or tax-free basis in the case of a Roth self-directed 401k provided that you take a qualified Roth distribution). 

There was a lot of deferred maintenance from the previous owner and we got all of that under control.

You can also get pro-rated taxes and if your inspection finds some repairs (but can be deferred - meaning they won't affect the loan approval process), you can get a deferred maintenance credit.The credits hopefully will be 5% or more of the sales price.

If you can be a little patient you can turn tax deferred into tax free. 

My thought is that a QC allows me to close for less by at least deferring taxes and foregoing title insurance and then take time looking for a buyer if I don’t find one by the close. 

Any money from the seller must defer repayment of principal and interest until the SBA loan is completely repaid--normally 25 years.

My terms were $5,000 at closing toward the principal, 2% points at closing, and 12% interest deferred for 6 months.

Or worse yet they represent the market rate rents for the sale cost not the current rents which are massively discounted because they would rather have 100% occupancy then to deal with tenant turnover which means most likely in my opinion all the units would need a lot of deferred repairs once you took over. 

More of a hard Money Lender scenario, but with Private Money characteristics.  100% financing (including rehab), 5%, 6mos - 25 years terms (6 month deferment on payments) and $1520 up front for origination fees and insurance. 

You didn't mention the asking price.Beyond that they're doing to ask for rent rolls, deferred maintenance, all the numbers basically.