My parents didn't want to risk a partially completed project on their property that wouldn't generate any income for years if it ever came to that (such ventures come with high risk).This approach might be common in real estate (understandable from the point of view of the developer).

I think this approach would be simpler and cleaner.

Fast forward to 2019, still in the corporate world however, I have started appraising now and was approached by a friend of mine to work together and purchase some real estate. 

Of the last 3 we bought 2 of them we found from approaching the owners directly, we saved ourselves allot of money by going directly to the title company and cutting out the realtor. 

Of course, this is the leveraged approach as I have a higher risk profile.

That may be a good approach for me. 

We see the Car there everyday and night and the new person brought me last months rent.On top of that we are now smelling Cigarette smoke through the walls since they ”moved in.”What should I do?

If I were the seller, and you brought this up this far into the process (after I had granted an inspection extension on good faith that you would honor our agreement), I would give you the option to close according to the agreed upon terms, or forfeit your earnest money.

Although it really depends on the market, 2% is more likely in the worse neighborhoods, and while those properties would seem to cash flow well, they are also higher risk and take a much more hands on approach.  2% in a nice neighborhood would be less common and probably not on the market long unless there were extenuating circumstances.Of course each city is different.

The board acts collectively and it should be brought up to all of them, not just one.