Thanks - my wife is a realtor and gets a discount on property management from her agency so we will use them.

Leverage their mistake and try to get a discount for the inconvenience and interruption of business resulting from the delays.

Buying from friend will also mean discount, as there's no agent fee involved.

A quality buyers agent is worth the little bit of discount you may receive going on your own @Paul Stephan.    

Also she has no financial records as she gave discounts for paying cash etc.Is there any other way to analyze the deal ?

I try to stay within the 65% - 70% wholesale guide line but sometimes these discounts are extremely difficult to get especially if the home is livable.

Kleisch.Exit StrategiesOur Options To Repay Private Investors Principal: Refinance the property up to 90% LTV (Loan To Value) and use proceeds.With buying at a minimum of 10% discount, this will work in most cases.Sell the property and use the proceeds.Exchange the first Private Investors mortgage position with a second Private Investor.Worst Case Scenario (if one of the above options are not available), while very unlikely, there is a plan.Continue renting the property and making payments to Private Investors until one of the options listed above is available.In this unlikely situation, the Private Investor will receive an additional 4% rate of return until the principal is paid in full.What if one or both of the Kleisch’s passed away?

If I would've discounted this area because it wasn't "ideal," I would probably still be looking for a property and not finding one.  

If this means discounting the selling price on the sell-side instead of working harder that's what they'll do.  

The agent says this is because there are very few agencies willing to rent out to townhomes. so few competition => premium is high. in addition he says you don't get multi-insurance discounts on second property.