Do your research, find comparable services in your area, and walk into the room prepared to strike a deal favorable to both of you.

Even if my offer might come in higher than other offers I am worried that she is going to present more favorably offers that give her 6% over mine that will give her 3%, not only that I would be better informed.Thanks and Merry Xmas. 

I am wondering if anyone has any insight on whether or not it is a favorable market in that area to buy with my shorter timeline.

If the rehab accomplishes both of these, your equity increases and it places you in a more favorable situation for that retirement.Good luck

You'll want to be sure you have the right kind of loan though - usually owner occupied loans have more favorable rates. 

Can/should I insist on better (or at least minimum) terms more favorable to me?

I assumed he would take a commission but the first deals would be so small, I believe he is going to just wave them as a favor to me.Obviously a great deal from my standpoint but I feel uncomfortable with him doing all the work and not getting reimbursed for his time and effort - and he's essentially giving up a deal that he could take himself. 

Once you have a property under contract, negotiating power shifts a little bit in favor of the buyer.

When I sell house in a market not favor to Seller, or if I really need to cash-out, I would try to repair all the items the buyer requested.

Chalk me up as another one in favor of new build.