Here are my responses to your questions1) Not my area of expertise, but the numbers on this are very strong2) I'd generally lean towards building the CFM, but strategically selling some properties when someone gives you a offer you can't refuse.3) Most HMLs would lend you 75%-85% of your purchases prices plus up to 100% of the rehab costs (though some HMLs like to see the rehab costs at or below the purchase price).

It sounds like the Seller does not want to commit until he knows the deal will go through, and until that time, he wants to be able to entertain other offers. 

The home was on the market for over 200 days, the builder offered 15,000 discount.

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

Your maximum allowable offer. 

Multiple offers situations are the rare exception, not the norm.

It's hard to say offer amount without knowing the rehab part since that could blow this out the water.  

When I asked my agent about options to back out, he didn’t really offer any advice.

Offer discounts for applying in a short time period or- offer a free application fee. 

Offer to help with lead generation, driving for dollars, cold calling, or even administrative tasks.