We do still need to look at your taxes but they do not play the same role. 

If you plan to live in this property for your entire PCS before you buy your primary, then the 25% equity rule may not matter or come into play. The

I can eat 5, maybe 10k, but I refuse to play the game that a lot of inexperienced/ desperate buyers are playing.

With prices and the market the way they are not, $300-500 may be tough, but I think the right thing to do now is play the long game.

Assuming this is a flip since you are in the rehabbing forum, then time is a big issue too so the guy who is more but does it faster may in the end be less expensive once you account for saved holding costs.Some contractors play the game of low bids and not include everything, then charge order you to death later so be sure your bids are inclusive of all line items you need.

Work with a realtor who knows how to play the game - you can do things like pass/fail inspections that give you an out if your offer does get accepted and you decide you don't want the home.

So investor no. 2 will be out 5% no matter what here and the VAST difference between the level of care/diligence of a PM with skin in the game vs someone hired to play the PM role would (in my book) be worth the extra 5% to be paid to investor no.2Having said all of that, it doesn't make sense for investor no.1 to do this for 5%- they are out 5% no matter what if a PM is hired, so why take on that extra work for free basically? 

Offer the carrot: move out by X date and if you do I will give $X dollars cash (basically pay him to freaking leave)Then hit him with the stick:You have no lease and are trespassing, you are going to call police and shut all power off and so forth, in addition you are taking him to court and so forthI usually play the “I am trying to be a nice guy and need you out, if you go I will Grive you cash to be gone”.

I personally do not play the appreciation game. 

Looking to play the silent investor role and be hands off, while providing the finance for someone or a team who already have an established business buying, furnishing, and managing AirBnBs.