I waited until I was going to move to do the major renovations to conserve cash.

If your conservative you can put the profits in a risk free T-Bill paying better than 5% with no phone calls to unclog a toilet.If you decide not to sell, then let's tackle your question about PM.  

And my experience with appraisers is that they are all conservative and lowball the number.

Wondering what kind of numbers to conservatively budget for a worst case scenario?

Be conservative with your numbers and you'll see how close you are to your desired cash flow.

House is worth 140k conservatively once fixed up. 

I believe the lenders you are communicating with are not articulating this well or simply don’t want to acknowledge they are conservative and it’s easier for them to point to the amount of cash consideration you’ve invested. 

In this example the qualifying P&I rate is $5855, usually with conservative DTI (debt to income) ratios of 37-45%.

Then because it is next to and attached to a MHP deduct 15% +/- off the value of the home's appraised value.  15% may be too conservative as I have heard some say 25% or more.The Park- Two ways to play this. 

Does that seem safe/conservative enough?