Refinance should not be appear on same closing statement as sale. 

They are here to close, bottom line.

We bought this property initially because the location was close to downtown where we wanted to live.

Homes are not appreciating like they did the past five years and have slowed down back to "normal". so if a home appreciates 4% per year, you will have closing costs when buying it and another 7%ish when selling it.

Have any of your client's successfully closed on this? 

This was a couple of years before covid, but it took him about 1 1/2 years to get them out, and he came very close to needing to file for bankruptcy in the process. 

So just purchased my first rental property last week and during closing the seller of the property got stuck paying a lean on the property for $4000 dollars due to several different old tenants not paying their electric bill. 

We look that you have the cash to close, the ARV is there, and your credit is over 640.

Although not ideal for investors, Im torn because with the money saved on the down payment and closing costs you could buy down interest, put a down payment on another home in a cheaper place etc.

Most sellers do not want to deal with FHA 203K due to the timeline it takes to close but in a slow market its possible.