Downfall is if I reduce selling price too much it cuts in to the revenue I expected based on ARV.

I did this for a four unit building I own and it has reduced my oil bill considerably.

Tenant essentially pays for the mortage.Con's for Cash-Out-Refi: $6000 closing costs, reduced cash-flowCon's for PMI: Stuck for the life of the property.

The house was originally listed at $465,000, then reduced to $435,000 after 4 months on the market.

@Chris MartinFirst, I presume that (i) you are referring to w-2 wages earned from your self-employment activity (e.g. you have a single-member LLC taxed as an S-corporation through which you are providing goods and/or services); and (ii) you do not have any full-time w-2 employees (i.e. working 1000 hours or more per year) working for the self-employed business or otherwise. 

I performed cost replacement valuations for a couple clients down here in Florida to show that they were being overinsured for what the policy actually covers (i.e. policies do not cover foundations) and was able to get their rate reduced by giving them their own ITV they could present and negotiate appropriate coverage for. 

2) If the asset is financed, does it also reduce the requirement for substantial improvement?

I suspect that there are a lot of other people she could have sent that deal to - but she sent it to you.I think your Realtor has earned a fee - especially if you hope to keep that relationship alive.I know if I had alerted you to a deal and you cut me out, it would be the last deal you ever saw from me.

This differs when you are bringing in leverage, as your mortgage reduces your NOI after debt.

You can always recast the loan when you have funds to reduce the principal.