They then told the buyer they could not insure because I had "Bad Title". 

However the buyer will always have time to do due diligence by bringing a GC.

(not counting the other wholesale deals I have made hooking up with a buyer from BP!

Buyer's realtor calls another guy who comes in, replaces the t-stat and all is fine. 

Assume buyer looking for CASH FLOW.

Seems like that commenter missed the fact that you're talking about Multifamily or is confused about the SBA program - it is only for Owner-Occupied Commercial (like a retail store buying out their own building).Fannie/Freddie could be a fit if you have the right net worth, liquidity, and credit, but as mentioned upline already neither agency likes an out-of-state buyer who doesn't have direct experience/ties to the market they are acquiring in, so likely not an option for commercial loan #1.

Very similar to off market properties that are sold...buyers typically have to pay their agents, as the sellers don't usually want to pay out a commission. 

HOA approval is typical for a buyer.

He must be talking to a few different buyers & fishing for a price.A $200k rehab budget seems rather high, even when accounting for local labor costs and assuming a 3/2 conversion.

Having tenant there should not be a problem if you are looking for a cash buyer.