I'm personally exercising self discipline in this market and sticking to the numbers when trying to buy my first live in multi.. it's hard work finding a deal..but just looking at foreclosure rates this year..

One of them was exercising his contract.

Agent Flat out refused, said he will advise his client (seller) not to take that deal, not for 20k down.He countered with $20k down for a lease purchase with seller collecting the rents to go towards purchase price until I exercise my option to purchase. 

You can tie up the replacement property with a lease option/option so that you can choose when to exercise the option and close on the purchase.  

A year and a half has gone bye and I realize this money is not going to last for my entire life if I don't start living very conservatively even with the investments that are made from within the trust, or enhancing my income. 

Not that you can try to negotiate better but it would at least be an interesting exercise to become more stringent on the property profile and back-off on the cash-on-cash return and see where it gets you.Or if cash-on-cash is the paramount threshold you can seek out value-add properties (risk/reward there) or some alternative markets that aren't as hot as Seattle.  

If Tenant fails to pay rent when due and the default continues for three (3) days thereafter, Landlord may, at Landlord's option, declare the entire balance of rent payable hereunder to be immediately due and payable and may exercise any and all rights and remedies available to Landlord at law or in equity or may immediately terminate this Agreement.

(http://www.loopnet.com/Listing/20404304/415-e-Magn...)This is more of an academic exercise as I am currently buying 3/2 SFRs, but I want to think about how to value multi-unit apartment buildings.

Do a mental exercise and add that $200 negative to your new mortgage payment  of the refi and see what the cost of that money really is.

One person did say, sell him an option for the lower price and let him exercise it.