Our understanding is that it has a single-bottom cylinder and we expected to need to make some expensive repairs or simply replace it, but we weren't sure just how soon.

Do you like rural living or are you simply attracted by the lower price points? 

But I think it's much more likely that the seller is doing a 1031 exchange simply by them selves. 

I simply told him e had a problem and they took over. 

I'm looking at developing Area, smaller municipalities with some R-4 Rural (Duplex or Rural Comm) that could be used as a land split to get the initial investment money back rather than trying to force appreciate the home itself and simply Rent at a slight cash flow ($50-100/mnth, $150 is the best I've found on MLS)   There's obviously some serious risk here because the initial $500-$3000 for the application doesn't come back to you, and you could very well be denied depending on exactly what you buy then left with a cash-in property with low returns.

Some deals are simply dead and the sooner an investor realizes that the better. 

To simply put it, no you cannot do that.

@Cristin Rakestraw I'd simply charge a pet fee. 

Waiving the inspection simply means you are willing to lose your earnest money to get the deal under contract.  

Should I simply just calculate that into my buying price?