Ok thanks, so I'm interpreting this that my strategy for now, it to WAIT, and then if the value goes up via appreciation and market forces, then I might be able to re-fi in the future.  

However, it is up to the lenders interpretation, so basically back to square one. 

I'm open to any and all interpretation and appreciate in advance any insight anyone can give.

To know the answer to your question for a specific situation, it takes lots of data, some experience to interpret the data and then some finesse to put a value on it that the market will agree with.It's hardest in the old neighborhoods that have lots of "character" it's real challenging.

@Lindsay Thomas From my interpretation as this property has a basement; this should fall under modular home and supposed to be part of the property.  

It's possible you mis-interpreted what your agent meant when they said you could renegotiate after inspection (usually that means for major issues like dangerous electrical panels, structural issues, partially collapsed cast iron sewer line, etc. that weren't obvious at the initial showings, not superficial things like "the AC is rusty" or "we should replace those ugly fans").

If you are new to analyzing & interpreting real estate values, it maybe worth working with a Realtor or seasoned investor who is an expert in an area you're interested in.

My eyes and experience are so new I don't really know if I'm interpreting right.

Not sure how correct this is because when my co-worker explained it I had to interpret a lot of it on my own because there was a lot of gray areas.

If I'm wrong on any of that, then kindly clear up my thickheadedness.So the part that gave me concern (because I've made mistakes in the past and I am fiscally conservative) is where I interpreted that you don't have any cash cushion.