But one of the main positives, is that the rate on the loan is at 3.625%. 

I was in the exact same position so I said it is ok, I will need 2 months of paycheck stubs, but then they told me they were self-employed and they owned and it work most off of cash. 

there's a positive)Excepts from the lease:16.CONDITION OF PREMISES:The Tenants hereby acknowledge that the said property is in good condition.

Understand about the bank's position and unfortunately at this purchase price it's typically 'first time buyers' with little to no money down.But the thesis you are working on there smells of collusion: bank wants a better ratio or less money in therefore 'works with' the appraiser to lower the purchase price. 

As a listing broker in California my experience with Wholesalers has not been a positive one so far.

I think (not positive) Brandon Turner mention in one of the podcasts that this is what he does and I am curious if this is common.

I actually have had nothing but positive responses from this.

@William SpringerIf you're buying all cash, you can find a couple of positive cash flowing condos in Austin for $300k total without too much searching.

There are market factors that impact supply and demand that don't move together.

As a former resident of Texas, I can appreciate the impact!