If I can't deliver they know its a deal and I have to hand it over.The seller is happy too, he gets his real estate issue solved, though you buy at a discount, cash buys makes this much easier.

@Patrick Philip,Well, banks are "flush with cash" these days, but no, they do not have unlimited funds.Also, when banks lend, they impose certain restrictions on the loans, the borrower, the collateral, the terms of the loan, etc. so the note can be sold in the secondary market or be insured by government-sponsored agencies like Fannie Mae, Freddie Mac, etc.Private lenders ("OPM") typically don't write loans to sell them, and typically are interested in the deal rather than the borrower's details.Using OPM down usually means putting some kind of partnership, joint venture, etc. together so the source of the down payment is less of an issue or a non-issue to  the lender(s).Dunno if that helps...

If it's just a single family home you could look at getting a million dollar umbrella policy to cover any issues. 

Interesting, especially the issue of potential conflict of interest.Disclosure is important here

The issue is that a lot of issues popped up on the inspection.  

My plans is to stay within arms reach of my home (Paramus) so that I can manage issues the may arise

The only issue with that  is that it will make it more difficult to sell them individually in the future.  

I want to make investments I can repeat so this method doesn't seem to solve that issue, just cut it in half.

I know once we start digging into the rehab, there will probably be some big issues.

Also, FHA short sales issue a ATP with a designated NET proceeds required.