Buy when market is high, buy when market is low.

These days with at least one Home Depot and Lowe's in every metro area, there are plenty of weekend warrior type home improvement DIY'ers.

I'm probably a little higher on the equity side than most, but I figure if I have good equity, my debt service is probably relatively low compared to rental rates and will also help ride out the soft patches. 

I have raised rents around 3% annually, which actually may be a little low for my area!

I think you are saying that the listing price of a house that you want is 150k, and the seller will go as low as 140k and you are trying to find out if this is a good deal.

In the past year, we started a renovation to add the second bathroom but ran out of funds (this is an attic conversion and our contractor was way low in his estimate).

Keeping a rental is cute and all but your ROE is low ($500/mo on $260k). 

I guess maybe I've been listening to too many podcasts where people have had low offers accepted.

The house clearly had some "settling", the price was low for the market, and the house was 50+ years old, so even though there was clearly some foundation movement "in the past", it was a solid purchase. 

Seller says B then I know it is low C maybe D.