If there's key information missing or some of my assumptions are wrong, just make some up.This is my first post - I tried googling this.As I wrote this I realized: -individual homes are normally custom built with the intention for the owner to live and enjoy that house, so a lone house being built to sell is unlikely. housing developments add scale

Lenders also want to see a down payment/skin in the game.

It's a quicker way than having to deal with the seasoning of a normal conventional loan which is usually about 6 months.

The seller takes it in the shorts by discounting the sales price to normalize repairs. 

It sounds like this was a normal seller/buyer transaction, and that would have no right of redemption. 

Making the competition for them higher than normal.

You need to have some skin in the game in my opinion. 

@Michael Payne there is not set amount that is normal, but in my market you normally will pay in the 5-6% range for a full service agent.

Normally its sold under personal name, but I will have more than 1 property closing and don't want to jump tax brackets and pay more taxes, so I am considering creating an LLC and transferring the property into that and then selling it.Any downsides/negatives to this route?

If you are buying a distressed property, you normally take it as-is.Give her two options.