They're used in multiple offer situations exclusively, so there's never a situation that occurs like you're presenting.I've bought houses for $10s of thousands less than I was willing to pay by using these effectively.  

If you think you will go FHA, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.

So whatever increases occur, are probably negligible and can be easily adapted to.

Once the sale occurs (for example -today is the county foreclosure sale here in Georgia) it would be too late.

I would attribute part of this delay to the time of of year, but I am also observing that price reductions have occurred on a significant number of properties as we head into the spring selling cycle.  

Tenant shall, at Tenant's own cost and expense, obtain and maintain in continuous effect during the term of this lease a policy or policies of insurance with such company or companies satisfactory to Landlord insuring against public liability on the demised premises in amounts of not less than One Hundred Thousand Dollars ($100,000) per person, and One Hundred Thousand Dollars ($100,000) per accident, and against property damage in an amount not less than Ten Thousand Dollars ($10,000).

To protect both parties, I used a commitment letter to insure that the tenant would receive their security deposit and first month's rent back if closing did not occur.

Might aid tenant longevity too, but I haven't really seen that occurring...Caveat being that I own B+ places and rent to pretty decent ppl. 

There are also a lot of local issues going on related to the gentrification that is occurring in those neighborhoods. 

If you think you will go FHA, 203k, etc. and then Quit Claim the property, to a LLC, or a Land Trust you run the risk of the lender discovering a Title Transfer occurred and activating the "Acceleration Clause" or "Due on Sale Clause" that requires the loan to be paid in full, within 'x' number of days.