The house is in very good condition, other than it has no central heat and air and some countertops and laminate in the kitchen.

Clauses that supposedly prohibit home child care that can't per federal law.  

Be sure to note in the move-in property condition report all items that are not attached to the building which you are leaving for the tenant's use.

The broker tends to be more in tune with what is transacting and market conditions.

On a recent short sale we did, there we had to sign a form certifying that the seller would not continue to occupy the property through a lease or otherwise..What is the source of this prohibition and why?  

After a couple of weeks of negotiation and getting her to accept the poor condition of the home we settled on a price of $39500 cash to her.  

@Detric MotonI like expired listings.I knock on their door.If they are not home, I put a pre-prepared yellow stick note like this one.If they answer, I ask them if their home is still for sale, If they say it is, I make an appointment to walk-through.I give them a cash offer (if wholesaling) or a sub2 or a lease purchase offer(s) (if in good condition).Good luck!

Got it for 30K almost move in ready condition, minor repairs.

Could be the condition of the property and the capital needed to actually recover any advances made.  

The bank will prohibit assignments.The bank will require that you demonstrate that you, personally, have the ability to purchase before they will even look at your offer.The bank will require that the property not be re-sold for some period of time, probably at least 90 days.The bank, and I say this with all due respect, almost certainly has a better idea of the market value of the property than you do.