Now, with your limited funds, and insufficient equity infusion (20% purchase price), it seems this is not the deal for you.No need to be discouraged, just keep looking.

I would like to try to submit a notice of insufficiency/default (anyone have a template?).

My contractor has estimated that repairs will cost approximately $3,000 of which I have deducted $1,500In total, I am deducting $2,685.67 from the $675 to cover the damages and insufficient utility and rent payment.

However, the lot size is insufficient and will not allow for parking, I am pretty sure the deal will go down over this. 

The biggest problem is that, just like a check, it takes days before you know that a tenant tried to pay with insufficient funds in their account.  

This almost always means that he checking account holder has had numerous insufficient funds, deposited bogus checks, etc., and the bank , as a consequence is placing 10 day holds on their deposited checks. 

It's not a matter of insufficient income for them not paying rent, but merely my father's kind-heartedness.  

And once that check is deposited, it is returned to the depositor in a few days as either fake or insufficient funds or closed account.

The entire reason I though about refinancing was to remove the PMI because I had put in sufficient upgrades that I believed it would bring my loan to value ratio to 80%.

My background is in health coaching, nutrition counseling and personal training.