Little background about me -I currently work in banking as a "Performance Coach" training bankers and managers on sales, customer experience and career development etc in CO and AZ.

Plus the bank is tacking on fees and costs every day which increases the amount they wIll be willing sell it for.

He wants to have the bank re-appraise the value to try and drop the PMI. 

@James Marshall I have not been on the borrowing side of this scenario however I have been on the bank side.

I know people who brought 100+ SFH from bank for avg of $90k per house in the BAY AREA in 2010. 

If you go into property management you will only learn property management, if you go work for a contractor you will learn about construction,  if you go work for  a wholesaler you will learn about marketing and sales, if you want to learn about underwriting or lending go work for a bank, etc etc.It really depends on what aspect of real estate you want to focus on. 

He withdraws his $100k cash from the bank account and walks away. 

This is only an issue if you work with larger banks and they sell off the debt to Fannie / Freddie.

right now I just have my agent and my financial advisor at my bank, should I build a relationship with a lawyer before hand and find a house inspector as well ?

Call your local building dept to find out what is required for your jurisdiction on new work.