Buyers usually want to purchase on today’s value while sellers often want to use future potential of the property (“current rents are below market” or “room to build an additional property”, etc) to increase the purchase price or likelihood of a sale.

@Ellis Moyewe really don't know a lot about this situation since there aren't many details in your post... but i don't think this makes any sense for anyone involved here...if it's a flip that's not selling, refinancing may not solve your problem and allow you to pay back the HML in fulland typically a sub to buyer wants a low interest rate... and if you refinance now you won't be getting a low interest rate, you'll just be getting whatever the market offers.and finally.... the vast majority of loans are NOT assumable. 

Money has to come from somewhere so where will it come from.issue will be if they increase sales tax it will be regressive tax as those who rent and don't own and have low wages will still pay more for everything.

@Alex Lee - A conventional renovation loan is not an FHA loan and requires a larger down payment...with the Homestyle renovation loan you can put down as low as 5%.If you can do Homestyle instead of FHA 203k, I think that is a bit easier since there are not as many regulations and requirements.  

low entry, systems in place How did you find this deal and how did you negotiate it?

I get it but over time, you are going to have to understand that no matter what you do, eventually you will have an azz that wants to give you a low rating.

Plenty of houses in the 400k range that sit over 80DOM because low buyer demand, low buyer ability.

This is a killer city that is untapped with low barrier to entry! 

If his landlord reference for the past five years is good, that would weigh much heavier than his eviction.Based on what you've shared, I think this is a low-risk situation, and I would probably accept them with a deposit equal to one month of rent.

I’m looking for ideas of how to do this, and any advice on how to protect my primary property along with paying low taxes.