Is this just growing pains I have to fight through or do I just keep saving money until I have the down payment?

All the best in your journey, and I hope that you continue to learn and grow through BP.

US population is still growing due to immigration and even in other countries where population is stagnating or declining (Europe, Japan)  housing prices and rents haven't dropped dramatically to my knowledge. 

In the future, you should determine condition at the time you take possession for instances like this.

As your #'s grow, I would expect a discount... but not at the beginning. 

I already have some pitential investors Looking to continue to grow the amount of rentals I have but at the current rate I will deplete my cash reserves quickly and I do not want to slow down while I wait to recover downpayments from my rents.

As equity grows, you can deploy it to buy an investment property or pay down debt.Hope this helps...

My question for "cash-only" sales are there any instances where a cash-only property would decide to accept bank financing? 

Welcome to BP @Aaron Korson Lots of info here to help you grow your business.

As I look to grow and purchase more properties I plan to bring on investors and wanted to better understand the concept so that I may better explain how to do it and how it works to potential investors as a source for them to draw from.