If you properly screened the tenant, I wouldn't worry he is trying to negotiate the best deal possible.

I personally am located and invest in the Colorado Springs metro area and would advise that you may not find many BRRRR opportunities on-market and will have to do some work to find these deals off-market. 

I want to pay them a preferred rate of return on their money without giving up equity in the deal. 

I currently own 1 rental property with no mortgage and am looking to learn how to get my second deal. 

An investor friendly agent can do all sorts of helpful things, like setting you up with a search for properties or connecting you with folks who have recently done deals like the ones you want to do. 6) Consider analyzing a deal or two in your local market, just for practice, with a free use of our Rental Property Calculator (or other calculators).

The house is unlivable, and now I’m dealing with the headache of insurance claims, finding contractors, and ensuring my tenants have a place to stay.

And perhaps partner deals with!

Could also be that buyers are finding better deals in the same neighborhood. 

@Yaakov S. doubt these tenants have high credit scores, so you're probably dealing with Class C tenants with under 620 FICO scores.THIS IS NORMAL BEHAVIOR FOR THEM!

This is can provide investors with more flexibility in cash flow, allowing potential investment in multiple deals at once.