The broker is telling me that all lenders have frozen lending due to market conditions.

After inspection, I told her that I could only offer $1k due to property condition, but she would no longer have to pay the taxes or any of the expenses of maintaining the property and I would handle cleaning out the property.How did you finance this deal?

Takes 7-8 years to pay off the loan if the entire cash flow iss reinvested.The better invetment probably depends on your goals. if you're a long-term investor and If you want to pay it off as soon as possible, 400k down would be great.

Typically annual operating expenses are $4000-$5500 per unit depending on area, condition, and other factors. 

I offered $100,000 without knowing knowing the address or condition.

With regards to your questions1)  I think most people use hard money, private money or cash to purchase flips, namely because the condition of the home won't allow them to qualify for 'traditional' financing. 

The Seller has accepted the offer on the condition that we remove the inspection clause, and their reasons for it is that they have another lower offer that does not have an inspection clause, and they don't want to further negotiate after the P&S has been signed.  5 of the 6 units have been renovated in the last 6 months.

While there are many factors to consider, a good deal is a good deal regardless of economic condition.  

I found this on the MLS and I made what I felt was a fair offer based on the current cash flow and physical condition of the property.

I found this on the MLS and I made what I felt was a fair offer based on the current cash flow and physical condition of the property.