You were given a credit, so you have their money.I would not try to collect anything for late return of keys, assuming you had access to the property and they were really out.I highly recommend you find a landlord/tenant attorney and have (pay for) a conversation about landlord tenant laws and customs in your area.  

What is the reason that the refi is needed, to consolidate the loans, lower interest?  

Total $22KHOA-$179/mo, taxes $67/mo (still can be lowered to $50-55).

there are insurance companies who will insure for a much lower value with the understanding that you have invested $50k into the building. 

Sometimes Lenders will use split premium too which is a combination of the above where you pay a lower monthly MI payment but you also pay a slight upfront lump sum.

If you can get the rents up, or lower the expenses by $160/mo you don't need to do that.

Do we have options besides lowering the price?  

Hi guys,I have a question about financing...Just considering options... say your wife has a W2 income from her job and you have a W2 income from your own S-Corp(and your business has been around for at least 10 years but with fluctuating W2 income) and then your wife considers taking a break from her W2 income to recover thoroughly from her illness... outside of the W2 income we do have $30k-$40k cashflow from existing rentals.How hard would it be for you to get conventional financing with this scenario (losing a more consistent W2 income - even though her W2 is lower than yours) to finance our SFHs purchases?

 $1900 or $2000 /month would be much more likely  based on other rentals in the neighborhood.Option 1 seems like the lower risk option and the way we are leaning if we keep the property.  

Rents tend to be lower there than say Dyer or Schererville, but the costs of homes these tend to be a little lower.Once other issue is your farm area?