Original asking was $145K but since the condition was not good we offered $125K and landed in the middle.

Any additional thoughts are greatly appreciated. 

Even if you sold your 1031 upleg after 5 years, you pay the $100k of deferred taxes from your original sale, but now you’ve made an additional $100k profit.

I'd once again offer them the option to break the lease with no penalty.

There are lenders that offer helocs / second mortgages on investment properties. 

I’m not familiar with “hard” money, do you offer standard foldable money?

Make sure you figure that offer into your number to see if the deal still makes sense.

If our tenants work outside during the day and our handyman has to spend few days to come to fix the carpet and floor, the tenants ask us if we can give them rental deduction to make up the working hours, how much rental dections should we offer them?

Property Manager assigned.Moving out of state, not willing to sell the property right now.In addition to renters insurance and landlord insurance, which direction should I go as far as protecting myself?

Additionally youll want a deep bench of backups in case your regular service providers fall through.