what is the best way to asses the value before i decide to refi cash out and pay an appraisal fee?

That would be $31,000 plus a lot of penalties and fees for being 15 months behind.So, if you just give him $6,000 plus the payoff is $51,000, that's pretty close to the ARV amount before you do any repairs.You can't negotiate a shortsale if he's not on the market with a listing agent.

Our LTV is less than 50% ( yes no risk at all for the bank, and we have top credit score.We already paid the appraisal, environment fee, wasted countless hours etc...The texts in LOI: Financial covenants:-- Min DCR based on actual rents for the first trust deed of 1.25:1.00 based on a 25 year amortization by the end of 2018.And in the loan doc---Property is to maintain a 1.25:1.00 Debt Service Coverage Ratio, tested annually.We would not have paid the fee and sign the LOI, had he included the phrase tested annually.Please understand that the loan  will be for 10 years long, and we are very confident that we will always have fund for the monthly mortgage payment.

I have two options in front of me either to obtain a rehab loan, which will cost me $10k for six months ( points, fees, interest) or just finance the entire deal with my own money (cash).The rehab loan will enable me to obtain an additional property, so in six months i'll have two properties ( one with the loan, another with my cash)  but it'll cost me an extra $10k (on top of the regular down-payment which in any case i'll have to lay out) .

Installed new flooring and painted the entire house.

To make it easy, I add additional 1% for PM fees.Long story "long", I use 11% for PM fees :)

I added the numbers up you are better off buying a clean title in good condition property.31K+19K+7K+closing cost, negotiator fee I got close to 60K...… If it was me I pass.

Most of which came from installing HVAC into both units.

FHA 3.5% Sales Price Cash After closing fees $305,000.00 $15,000.00 $430,000.00 $127,000.00 Monthly PITI Average 4 Bedroom Rent Realized Rent Savings 2.5 Years Repair Cost $2,500.00 $2,800.00 $9,000.00 $27,500.00 Total Money Invested (Repair Cost+Downpayment)-Rent Savings ROI: Gains from investment-Cost/Cost $33,500.00 280%

I would call an attorney, pay him his fee, and do what he recommends.