There have been multiple times when I didn't offer on a property because I thought my offer would be too low, only to meet the person who eventually bought it for less than I was going to offer.Over the years, when struggling to afford a decent investment, I've come back to condos time and again because they can be high quality homes in nice neighborhoods, and at an affordable price. 

They may be tolerating a lot of bad tenants. 3% should not be used as a gauge to their quality as a PM.

I did speak to my accountant and he said there wasn't any real tax advantageous way to do this sale.

I’m looking for quality products at affordable prices that are better than the big box store lines.

I am an investment consultant in Austin, Texas so I can't speak for investment strategies in the area myself, but could put you in touch with my connections in the area if you would like! 

Secondly maybe you aren't in the right network and aren't speaking to the right people man.

Speaking of large purchases, they can also be used to fund a down payment on a second mortgage—but is that a good idea?

I just heard someone from there speak about it.

Generally speaking, for FSBO, can the buyers and sellers just use the standard MLS form for the applicable state, and simply cross out parts of the contract which deal with agency, etc?

They should check if they are insolvent or speak to their CPA about other ways to decrease tax liabilities if they have them.