just an aside its going to be interesting here in CA OR WA were new state laws are being passed that dictates ANY SFR zone can now have a duplex.

There are couple issues with this strategy, first you are disqualified person and rules dictate that all transactions must be arms length.

The market dictates price as a function of desirability...and the verdict is out on this property that it is not worth what it's listed for...when the right price is set, it will sell...assuming it's worth more than listed currently is flawed thinking.Good hustle, though

Don't let your tenant dictate how you maintain the home.

Once they dictate the rules, they end up in the power position.

Most private lenders dictate their own lending terms, so I would start by seeing what they want.

I told them that those funds will have to be used for the plumbing expense they owe me since it is an older charge.Can they dictate where the money is used? 

If they don’t extend, your exact contract language dictates what happens with your EM. 

As Tim mentioned, those are dictated in the bylaws.

Taking the average of 5 comps is one way to have a decent ARV (not too aggressive and not too conservative), however, your specific market and your level of rehab will dictate if you get the top price or the "average/median" price of the comps.