Be mindful of a gift tax implications if you sell a house for less than FMV.Also be mindful of transactions between related parties when selling at a loss.

Are there any lenders who are lower than this, I've been brokering myself.

Should I wait for Spring for greater inventory, or for lower rates to see if cashflow improves?

I think you'll be hard pressed to get an ARV of $140k IMO...I'd expect something around $115k or lower.

In this scenario, the higher pref and lower splits only come from the GP side.  

Typically, the adjustments I see on appraisals for basements are more flat rate adjustments. 10k is usually the number I've seen.What stinks is that there are a couple of model types that have below grade space where the builder, I'm sure, was trying to lower the taxes by having it below grade so the county wouldn't count that space in the assessment.

Often times if you lower the rate, the fees go up and vice versa.

From my understanding, it might be more advantageous to refinance as a rental property at a lower LTV with income from two units, rather than as owner-occupied at a higher LTV with only one rental income considered.

Lower the price2.

I will be lowering the asking price and seeing if that will help in the sale of these properties.