They want to recover as much as possible and reduce their loss as much as possible.

You and your sister have gotten used to free or reduced rent and spent your rent money on other things.

If you purchase with cash, you're reducing your returns.2) If you do find a lender (they do exist) it will be at a low LTV and a high rate.

Obviously this benefit is reduced now with the lower interest rates, but people are still doing it for the sign up rewards or to save money on higher priced debt like high rate credit cards or helocs.A few links.http://en.wikipedia.org/wiki/App-o-ramaThe grail of the app-o-rama peepshttp://www.fatwallet.com/forums/finance/632935/

Should you pay the price when they get the benefit of leverage versus a cash buyer that doesn't have interest expenses reducing their "profit"?

Yes it all comes down to it when you are a large developer or an institution how you make money and reduce taxes is more about timing and structure.A group of small investors or an individual investor is chasing yield.

Another great read to help simplify your finances and reduce spending, have an emergency fund, reduce/eliminate debt is Dave Ramseys "Total Money Makeover". 

RV tanks rely on gravity (in my experience)  perhaps you could let the tanks run into some sort of aproved tank that is larger and could be emptied less often, thus reducing expense.     

With a good tenant, who renews several times, this cost would be reduced, minus renewal costs, however, I would agree to say to make the tenant placement fee near the 1 month's rent mark so you do not under estimate your costs.Are you an investor in the area Eric?

I think you could probably reduce the amount you're spending on furnishings.