They reduce the percentages given by inspectors to try to hold back rehab funds for completed work.

THEN refinance with a traditional lender to reduce the rate. 

@Nate S., well the market is what it is.  

If selling and reducing debt is your goal (a very noble one at that I might add) then go for it.  

We probably could have gotten a slightly better rate from a local bank or credit union, but this way our up-front costs actually reduced the amount owed on the loan.  

Considering reducing the rent amount to generate more interest, getting 1-3 leads a day (or was when I had it listed, before hiring leasing agent and they took over the listing).Any thoughts or advice?

Remember that the motivation for developers and other intermediaries is to get paid out of a transaction, they are less likely to be thinking about how to reduce the risk to us investors and that needs to be our job.

I've found that they don't repel mice as well as advertised, though it has reduced the spider population (I've only seen two inside the house this year).Another alternative is to encourage the tenant to clean with a peppermint based soap.  

I frankly think 20% is way too low because there are many other variables that could easily reduce that 20% down to 10% and at 10% you're basically working for free.

That being said I have more faith in my community than to think we would be reduced to a Mad Max/wild west quality of life.