Furthermore, I could've sworn appraisals are done when you have some level of construction documents so that a bank can loan you appropriately.

Aunt A, sister of parent A, helped co-signed to improve the chances of getting the loan approved and made no monetary contribution.

If a seller is offering $10k in assistance but the PP is only $189k on conventional a loan with only 3% contribution allowed, what are all the options for the for any of the left over contributions after. paying closings costs ?

We are in the position to buy all cash but not sure if should go that route or so something like 50% cash and 50% loan.

@Flavia Vangelotti With your expressed concern for cash flow, I suggest considering a Debt-Service Coverage Ratio (DSCR) loan.

Rentals loans/ DSCR loans are typically 20% down 

Intitutional people like us are going to struggle with a $50K loan.

I have heard that paying off your rental is not necessarily the best choice because of the deductions it allows for, but given the type of loan this house is mortgaged with, is it even possible to buy another home together and start renting this one out when I have a FHA loan on this one?

I'd start by talking to a mortgage broker/loan officer to find out how much you're qualified for. 

They also receive information on operational expenses through one of their loan servicer partners but I don’t find that to be entirely accurate.