Once you build a relationship with them through multiple loans they'll increase the percentage up to the full amount.  

(On a more general note, I am becoming increasingly interested in real estate investment and am enjoying this hobby!)

Once DD has stared and I can flesh out the operational details like what will CapEx look like month 15 when I have to replace XXXX and this county adjusts taxes biennially so in month 21 I can expect a 10% increase.

Waiting on the appraisal which should be completed in a few days, it will be interesting to see if they appraise it at a 3 or 4bdrm.My current plan: Increase final selling price by 2.5k and ask for 5k back in seller concessions. 

I do not want this deal to go through, and I would still probably be willing to move forward if they matched my increase in price with an equal increase in seller concessions (so they they have no net loss) .

From a business perspective it’s very simple, raise the rent to market value / increase profit.

We also told them that the rent would increase by $50. 

The property value is not increasing year over year?

I'm quite used to increasing leverage with each 1031 exchange.

Not only does that help the military member, but it increases mission readiness and will also help the landlord receive their due rent payment.