You never know when the county/state will try to shut you down private sewage system wise.Water,, owning the leaking pipes and the testing / treatment is an expense.  

@Alex Stepanov it's unfortunate that you are getting this kind of treatment from local agents.Yes, we are very busy in our extremely active market but I couldn't image treating anyone like you've be so far.I know in our office of 65 retail agents, most [all] don't like to deal with investor because they "low ball" and only buy low end properties and the commission is very low.Your reasonable ROI goal of 7% can be done easily.Have you selected a property manager yet?  

This is where you show your solution to their problem.  

The amount of time that you hold the property does not determine whether you qualify for 1031 Exchange treatment. 

If there is any liability it's minimal, as they are inspecting and not certifying the property.There could be natural springs and if so I can understand why the buyers would back out.You might need a soil scientist to look at it and if he/she agrees with the inspector than see what the solution is. 

Simple solution move into the house. 

I just met with the buyer and they are satisfied with the solution.  

Thx @Mark Brogan@Alpha DiawaraThe name of the game in residential real estate is cash or termsWholesale deal no, no equityList w agent deal, no, seller Will need to pay costs so including commissions closing costs so is concessions holding calls repair costs, say 10% of value, if accurate price is 390,000 that's 39,000Sub to, you can't buy any equity and rent equals PITI payment = no cash flowWrap around, noJoint venture with the seller, noContract for deed noLease option assignment only solution, get out of this no equity deal with no cash flow and minor repairs

Your responsibility to pay back the bank for your old mortgage and tax treatment on the sale of the house are separate considerations.

Instead of the offer being just about exchanging a certain number of dollars for a house, it becomes a solution for a problem and makes it much more powerful.