Using your own funds to pay down your loan so you get a bigger loan sounds like a zero sum gain (aka IE using 1 dollar to pay down loan so you can net 1 more dollar from the new proposed loan) So how are you going to net more cash when spending 1 dollar to get another 1 dollar ?

Get the inspection report and check comparable properties quickly for condition and then go to the seller with your proposed reductions and be able to point out condition-comparable properties in keeping with your proposed price reduction.

@Andrew Sanders, I do work in Yakima.

Something draining cash that I propose to take over and pay the owner some extra cash, that I can’t understand.  

How much is the  adjuster proposing for rebuild?

@Paul Sanders, just a few thoughts. 

You can make a new lease with that tenant proposing a rent raise anywhere from $300-500 but you have to be able to justify it (maybe the property doesn't have central AC, maybe you're planning to do some other type of updating but that can be hard when they're physically living there still if its a bathroom or kitchen) and I would also make it so that that rent increase would go up after 60 days of them signing and agreeing to that new lease. 

Quote from @Austin Schubert: Quote from @Chris Seveney: Quote from @Austin Schubert: Would anyone have a sample template of a proposal that you've used in the past that goes over how your structure a deal with a private money individual? 

It would be nice if the SEC or the Texas Attorney General proposed some legal remedies. 

May require some idea of building footprints and uses being proposed.