This amount is fairly predictable year over year, even with repairs.2) Calculate my loan payoff @ year 10 to find equity at the time of sale.  3) Multiplied this by LTCG of 15%.

If you have a PM, they are in the best position to know the answers to your questions. 

Is it normal and possible to negotiate for a better price for the house in this position?

Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio.

I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation.

It lets you get into real estate with minimal down, you can build equity in a property while your tenant in the other unit helps pay down the mortgage, and if done correctly reduces your monthly living expense. 

We wanted more property for our family and extended family and I knew I could use it as an STR to offset costs and pretty much give us a place that pays for itself while getting some tax benefits, equity, and possible refinance in the future.

The option that I am entertaining is to purchase a multi-family that will cash flow enough so that altogether, the two properties cash flow positive.

Simplified numbers on the deal:Purchase: $499KRenovation: $77KTotal loan: $578KEst ARV: $685K Refi LTV: 84%If all goes well, we’ll be looking at 13% forced equity + 3.5% down = ~16.5%.

Maybe you could find out if that house is also for sale @ a discount and now you have 2 properties that you can improve and drive the equity up.