Then they lowered the price to $340,000, a step in the right direction, but not as big a step that I liked. 

I have lowered the price significantly this year. 

Is the higher price agent inflating to get the listing or is the lower price agent just not keyed in well enough in the specific neighborhood?

My guess solely looking at your numbers is that it's an older/distressed property which means you have to account for more costs in capex. 2nd thought being it's not in the best of neighborhood then you'd have to take into consideration lower quality tenants/ neighbors and maybe increase expected vacancy and late payments.

The lower unit is a basement/guest suite.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Where did you find this company and or was it referred to you.2. did you go with them because their fee's and interest rates were advertised as lower than other lenders.

Unless new companies move into town and create replacement jobs, all that will remain are lower-paying service sector jobs.

The only other option would be to get a coborrower to bring the down payment or get seller financing with a lower down payment. 

It would be a good idea to assess your tolerance to risk and then plan something like that, but using a heloc is going to be around 9-11% in this market so to pay something off with lower interest rate to borrow more might not make much sense.