After leading us on for nearly 8 months, she finally informed us that the bank rejected her financing because the house is wooden and has a greater risk of being damaged by the tropical weather.Recently we were presented a cash offer of 75k and the house was appraised at 112k in November 2017.

Finally, if possibly, we attach Proof of Funds to the end of our LOI.

You will have escrow fees and you will have loan fees which are paid to the bank if you're getting financing. 

Bought it off of Homesearch won the auction site unseen for 23,000, go to see the house and estimated 25000 worth of work to get rent ready..spent about 25 to 27000 on the rehab, so right on budget.. paid cash borrowed 20,000 personal loan from bank.

But point is that banks are completely OK with this as this is a common practice with estate planning - moving assets into trust that is LLC. 

Set a draw schedule for certain items and dates attached.

Months ago, he asked me to find out what kind of rate I could get with my bank on a 30-year fixed mortgage, which was about 5.5%.

In addition previous owners will never give up their personal attachment to the home and will make for a very difficult landlord/tenant relationship.

In this scenario when you refinance do you go through the normal process of refinancing where a bank would look at your loan terms/house appraisal and decide if they want to take it on?

I've recently talked to about a dozen local banks and credit unions, and it was difficult to find one that offered a LOC on an investment property.