The wind storms we get here have blown a few of the arms off.

meaning... when evicting a leased tenant, there is explicit writing that must be followed such as after 3 days late they will receive a notice, and owe $40 extra etc... but with a month to month and no signed lease nothing is specified.

Since there is no arms length transaction, appraisers tend to skew very conservative on your valuation.  

Matt Faircloth does a great YouTube on it , but he discusses how partnering with an active investor ( like myself haha ) you can become a millionaire and not have to raise an arm !

Granted, the interest rate on the loan for that house was 10.75% and it could change monthly (fully adjustable ARM with negative amortization).BTW, inflation is causing the currency to be worthless.

The purpose of my example "negotiation" is not about negotiating; it's about uprooting their strong-arm tactics altogether and ending the air of intimidation.  

Our investment arm won't invest anywhere where we can't assemble a strong, trustworthy team including a real estate agent that knows what they're doing (few and far between) and a great contractor (also hard to come by).

Since you say it was "listed" I'm assuming that that means it was on the MLS and that the seller is represent by a listing agent (if that is not the case, then the following is probably moot)...In 99% of transactions where the seller is represented by an agent and the property is listed on the MLS, the state Board of Realtor's standard sales contract is used, and the majority of them (if not all) are explicitly non-assignable.

Thoughts on 7yr ARM vs 30yr fixed with these high rates?

Fairly standard caps already in institutional ARMs.