However, in most circumstances you would want to have at least 91-95%+ PO at all times unless you are performing some moderate-to-heavy interior renovations.

Currently, I'd only be able to take out a mortgage loan for 60-70k, but the amount would more than double if the student loans were removed from deferment.Has anyone had experience dealing with a similar circumstance?

Those specific costs would be included in your depreciation basis for the rental portion of your house.Consult your CPA for more specific guidance as it applies to your unique circumstances.

What you need to do to get such a title depends on the circumstances and the appetite of the particular title agent. 

Change jobs and adjust to a more frugal lifestyle.Keep in mind that a paycheck to paycheck life style is by choice not circumstance.

My suspicion is that there are extenuating circumstances, you did the math wrong, or this is very far inland.

Engage a professional to consider your and your partners facts and circumstances before you start setting up companies.

If you can afford to come to closing with a check then get out now and learn from it.I dont think there is an easy answer for you but these are the two things that I have done in the past due to similar circumstances as you have stated.

Do you think that is a reasonable ask given the circumstances mentioned above and any recommendations on negotiation techniques?

Someone who examine your facts and circumstances and advise you on tax entity structuring and treatment of payments/expenses.If the washing business is a disregarded entity, there would be no deduction as you're just moving money "from one pocket to the other".If an S Corp or C Corp, possibly, but then we'd have to look at: is the payment reasonable, ordinary and necessary.