This is obviously a great equity position.

Note: My broker told me that the mortgage payment was $3665 and this already included the MI, taxes and insurance so that would be the total payment already.

Is there a valid reason on their part to void the deal if the needed repairs are obvious and a little more than just cosmetic?

@Ho Eun Park I manage Two of our properties, a total of 6 units from 3 hours away.

Obviously you don’t want to pay a mortgage.

For obvious reasons, the buyer opted out of the contract.

Since your property is already all cash, if they're perceiving a near correction they'd jump right into a total all cash investment through the 1031 that provided a good return and had a 1-2 year exit so they could come out if wanted and take advantage of a buy opportunity. 

Depending on the state, you're responsible for the total payoff including the entire outstanding balance, arrears and legal costs. 

That is obviously a misread on my part then.  

You Do have total control over what you offer.