We don't have anything against buying a house that has been a rental, it just has to fit with all the other requirements we're looking for (3 bed, 1 1/2 bath, large yard and in our price range and not about to fall down).

My theory is that the owner was originally planning on flipping the house to make money, and feels our offer doesn't cover the work she did. However, she only got halfway through the work (downstairs is pretty nice, but the upstairs needs to be repainting and one room needs floor work and possibly plumbing). I'm trying to forget about it because I'm partially in love with the house and need to be strong about what I'm willing to pay.