The additional cost will give your lender more peace of mind, and it gives you more credibility when talking with other potential investors.One thing I add in my note is the term of the note (3-5 years) and the option to renew.

Not just for your own peace of mind?

To keep my peace of mind I want to put a contingency in the contract, or at least a longer inspection period that encompasses the time the inspection results are supposed to arrive.Question: Is asking for any of these going to blow my "highest & best" status with Freddie?

But, as you can see, that extra $4k from the extra 12% will give me peace of mind/safety from this.

In the long run, you want stability and if you are not losing money, and it's all good, then keep the peace because if the time comes when you have to have an exit strategy of flipping the property...it's going to look real good to an investor that you've had no high turn overs, maintained market rent and still have the same tenant in place, to that possible cash buyer investor looking to have turn key rental property.

Smile, shake their hand, say you completely understand, thank them for the opportunity, and let them move out peacefully.

I might just take the $6000 hit and move on for peace of mind.

Which will cost me first months rent plus 10% every month, but for peace of mind it will be worth it.

The peace of mind of not having that mortgage obligation would be much greater than keeping it and having a "break even" or "negative" cashflow.

It is just peace of mind for her and it helps to manage her potential liability.