Here is (was) the deal:I found the worst house in the best neighborhood....3 bd/ 2 full bath/2 car Gar/ Finished basement (which needs to be refinished) We have an accepted bid for 95k, the appraisal came in at 102k and in "Fair Shape".

I don't understand why they wouldn't accept money from me. 

Any depreciation deductions you took on previous tax returns (or were allowed to take, weather you took the deductions or not) will have to be recaptured (included as income) before figuring the capital gains tax or tax exclusion.

I have not accepted any offer and will likely counter. 

I just got a seller to accept an owner's finance offer.

Until you understand the myriad of different strategies, you are just taking a shot in the dark or following someone else without accepting personal responsibility for your own investment decisions.

However, how can I negotiate a good seller finance deal or get him to accept .70 cents on the dollar? 

I have studied flip books and repair costs etc, so I think my repair estimates are fairly close, but I'm having trouble getting a deal accepted.  

At that time, they took back their counter offer and actually ACCEPTED my offer of $90k less than the asking price!!!!!

Accepted offer4.