Inform them the problem has been addressed and remind them they have signed a legal contract.

You need to provide more information than that to decide if it is a good deal or not.

This is just a start, but I think with a bit more information, you can avoid the usual answers here like, KC, Indy, Memphis, Austin, Cleveland, etc, etc (these are ALL fine markets, but I would assert that investing in any of those cities is NOT always the best choice for the out-of-state investor, based on answers to the questions above, as there are success stories on REI in almost every town in America).

Information about LLC formation and the basic ins-and-outs is readily available all across BP and in the podcast.  

This information was obtained from the Texas Real Estate Principles ll course. 

Your cash-on-cash return will (best guess given the information provided) be 3.8%. 

To anyone from the outside, my offer does look like "a ridiculous low ball" but that's only because the listed price was ludicrous to begin with and based on completely wrong information.  

This is a great place to find information and contacts that can help you move forward with successful deals in Real Estate.

Also just roll through the forums, there is so much good information on them.

Thanks for any and all information!