Could help here with some relevant indicators?

This does not mean that some other city in San Diego metro area does not have what you indicate; I would not know as our 2 rentals are in the city of San Diego.

In 2020 they are very real and migration trends have been very favorable with families and individuals moving to Arizona from other parts of the country.All the indicators for the Arizona housing market remain very healthy at the moment.

Darius Ogloza, you're probably right that the amount for the roof that indicated is low...

@Scott Ublacker I recently completed a private lending commercial cash out on a commercial (auto repair) property in Newport News and the appraiser noted on the report that there were indications of a underground storage tank (UST) removal.

However this will likely change, since the HM lender indicated they would ask more money down now.

But I'd say if you personally are going to live in the home, I'd definitely lean toward doing it.If you see no indication of moisture issues or anything else that makes you think mold is an issue, then I'd say this is optional.

I have not received any indication that they have lost their job or been in poor health.

Typically, the like to see at least 15% of the purchase price down.You really want to get this for something closer to $100k, if you don't want to leave any money in the deal.You're very unlikely to find a lender who will refi at 85% LTV as you've indicated in your analysis.Your vacancy might be a little low.

Just be up front and get it done with a minimization to his inconvenience.