The 'better' alternative is as @andy points out  to borrow from an independent party, with recorded security interest, proof of loan term compliance... all in an arm's length transaction.

@Andrew Warner I'm extremely late to the party here on this one but I couldn't agree with you more.

Does it just make things more complex so maybe the other party won't discover it?

Just realized there is a lot of fraud out there and both parties need to be careful.Joe Gore

One you fine out WHO the owner is from county or state records, the hard part is locating them. 

The hard part is knowing the true fix up costs and the true resale price.  

I would be blunt, though leave out certain details such as the family part. I

They will keep the EMD.However, in the Fannie Mae addendum, there was a paragraph, drafted by their own lawyer, which states that either party may cancel the contract at any time if there is code violation blabla.I called the listing agent and ask him to check the addendum himself with Fannie Mae lawyers.

Making a subject to offer actually helps with a lot of things:  - You decide what purchase price makes sense for the property to cash-flow - You find out if the seller is interested - You find out whether repairs and update costs will make sense for the purchaseAnd at the end of the day, you're moving quickly, and as all of you said, it helps minimize wasted time for all parties

Contingency part : Is it better to put cash and cross out all mortgage contingencies or put mortgage 95% LTV etc and give myself 30 days “to obtain a mortgage aka finding a cash buyer” If I put cash they might ask about proof of funds ..and I also limit the time to find a buyer ..as attorney review period is only 5 days in IL.