When I was at the closing table I even asked them to confirm the age of the roof because I noticed something and the realtor said it was a squirrel which it was and more. 

You can't put food on the table with an SDIRA without penalty until you reach 59 1/2.

they already had an offer on the table from an out of state investor who has never seen the house and they preferred to sell it to someone local if it was an option.

Water table is too high maybe.

Off-market multis with 4 or less units are on the table for regular wholesalers in most areas because they can focus on lists like that and not commercial endeavors.

I'm sure savvy investors will cringe at this thought but figured I'd lay all the options on the table for discussion.Thanks,Jeremy G.

I own a home out right, I rented it out under the table to family for the last year.

Because of this condition, my first question, is your assumptive ability to get this owner to leave ~$70,000 of his asking price on the table, considering he has obviously already taken into consideration the parity between the selling price of the house across the street by decrementing that price with your exact amount for repairs and rehab of $40,000. 

Some one that will bring money to the table so you can do the deal with minimal money in, but you'll do the work.

An 18-year-old investor looking to learn, ok, but still what can they bring to the table.