Despite a relatively stagnant population, the demand for housing in the area seems to be relatively high at the moment, and market prices are unreasonable.

Wholesalers and agents really dont play well together 

Should I play nice and allow her the extra time?

I tend to think that luck has much to do with any money-makers  Make sure, if you have committed to doing that, is that it is in a good location and the demand is good in that area, that the area has good amenities, good retail around it, and the population and jobs are growing in that area. 

If you're confident there's demand in the area and you can sell at around 1.3m or maybe refinance if you ever decided to, I'd get aggressive if needed.

If you had $100,000 in principal left on the note, you should expect to receive a credit line of up to $300,0004) I wouldn't play this card with the big banks.

There are lenders that will do 90% of Purchase price and 100% of your rehab funds if you have a value add play. 

It's always a good play on a rehab though.

That said, if they initiate it on the first and the money is withdrawn from their account that day then rent is paid from the Tennant's POV so I don't see how a grace period comes into play.

He felt that $66k is what it was worth and was happy to play chicken with the bank.He didn't close on it.