Why not just go to a bank or private lender rather than play with that very high interest money?

There is a high demand for rentals and not nearly enough inventory.

Try looking at it a slightly different way with some quick math:$900,000 sales price$22,500 cost of purchase (appraisal, points, lender fees, title fees, etc - 2.5%)$90,000 cost of sale (10% commissions, closing costs, buyer credits)$64,000 carrying costs (6 months at 10%)$25,000 additional carrying costs (6 months taxes, utilities, HOA, misc)$100,000 rehab cost (the number used above)$68,500 profit = $530,000 max allowable offer.Some numbers may be a bit high, others may be a bit low. 

Need to repair walls around water damaged areas a kitchen.

Since the home had Kitec plumbing in it I went ahead and had that replaced since the water lines were damaged during the tunneling for the sewer line replacement Work was completed.

This comes largely because of high demand, limited supply, and favorable property purchase prices in Kentucky.

Is it a good idea to send them a no pressure letter in the mail proposing a conversation to possibly to solve there issue?

I live in California and like many California Investors prices are just too high in the area I live.

@Tracy Scott it's highly dependent on the deal, the type of property and the location.In addition to the items others have mentioned, here are some of the biggest potential start-up expenses that I study closely before buying a property:Foundation/structure--this is one of my few "deal breakers", I typically will not purchase a property with significant foundation or structural issues.

I was able to set and get the rent high enough at the AZ home to cover both the orginal mortgage and the equity loan.