Just out of curiosity was he one of the lower bids?

Obviously someone is happy to invest their money on a fixed up property with lower cap rate. 2.

There are different credit requirements, but the rate should be lower. 

(rents are increasing in the area, but we are heading into fall/winter where the tenant pool is lower) Assume that you would get pretty much all your money out on the refi.

I have 2 options:1) Purchase the property cash (hopefully for a lower price) - lets say $35k and then fund the rehab ($40K) cash - so my all in is $75k + closing fees.

@Forrest Williams High crime areas is no good for anyone, unless you want to kid shot.In saying that, some people with experience don't mined working in lower demographic areas, BUT the returns are often not as good as they look on paper. 

You might want that in the first year as it increases your cash flow in a period when usually propriety performance is weak and the cash flow is lower (and that could be useful in financing/refinancing said property).

They will likely try that a few times with the same reserve price before they relist at some point with a lower reserve price if it doesnt sell.

About 5 business days in i looked at mls and they lowered listing price to 129.9.

The end result is lower rates of pet dander and allergens in the buildings.