Is that grounds to get my deposit back because seller cannot produce clear and good deed on closing date?  

Real Estate Investing like that, without doing any Sweat Equity to get a fixer upper to produce positive Rents is something that Real Estate Agents look for.

I don't want to get caught up in the minutiae of things that don't produce results.

I would only plan to stay a year or 2, and I want to make sure it will produce once I leave. 

It's a legitimate 7%+ Cap and will produce 10% COC with current rents, not proforma. 

I thought the timing was great, because I had just found a great deal that produced a $40,000 net Buy and Flip strategy, or just house hack it for 1 year,so we  go to try to Find the money to finance the project and we were Denied.

If they are the ones making the offers they are incentivized to tweak their Zestimate algorithms to produce lower numbers.I realize Zestimates are not always accurate or a good measure of home value, but there are many people out there that put a lot of stock in them.Would you hire a home appraiser that made cash offers on every home he or she appraised?

Does the extra money you will produce with an STR adequately make up for your time involvement to justify going that route in your situation?  

It would produce appx $2600 in income when fully rented.

I think a lot of these "investors" are just trying to park cash in a safer income-producing asset than the stock market and many of them won't be keeping up with maintenance or won't be forcing appreciation with rehabs, etc, and the deals will be coming.