Also, I saw on another thread that you are thinking of using Key bank...

Have you tried traditional banks?

If you don't keep insurance on the property if its mortgaged, the bank will get insurance for you and you won't have a choice in the matter.

I own the land debt free.Will banks finance these deals if attractive?

I know I heard about a bank that would allow 10% down without PMI on one of the podcasts.

She (Kat) has been given pre approval on any other property in the same budget, by 2 different banks, but is having a hard time securing this one as she is currently living in it.

Plus with the new sales price I should be able to bring the assessment down as well, leading to some additional savings on taxes there.I have two possibilities for this property, the first being to get it refinanced by a bank ASAP to pay off the seller financing and bring the debt service down by about half.  

Of course, the bank insisted upon the $300,000.Nonetheless, if the appraisal you get is way off from your asking price, you will have no choice but to lower. 

The ARV should be around $75K.I just called my bank to make sure I was not missing anything when it was time to do the refi.  

In current condition it would definitely fail.