Based on the communication my workout specialist had with the wife(who is no longer responding and apparently is separated from husband and doesn't live in house) the house may be rented out.

I would venture to guess you probably don't really have a clue as to how intense it is to manage HIGH cap rate properties if your the nervous type might not be a fit for you...

Actually roofs are very tricky here - we get crazy intense hail sporadically.  

I am not going to be dishonest...I am just not sure if future intension is something that will come up in a refinance.

Option 3) Try to work out a short sale or principal reduction with the bank.

Expecting more work out of someone for less pay isn't necessarily a recipe for success.That being said: redfin's probably the best website of it's kind that serves the bay area.

Then you have many who invest for just cash flow which is more like a management intensive business.

Obviously, the numbers dont really work out well with the listed price.My main question is, as a bank owned property, would a number of $180k, all cash be something the bank would even consider?

Knowing you CAN do it will keep you going even if a future deal doesn't work out so well. 

Us DIYers sometimes see our good ideas and good intentions work out 'differently' than planned lol.I have had days like this as well.