FHA/house-hacking is not an option for me (I live in an A+ neighborhood with best public schools in area w/3 kids).

Don't buy in the roughest neighborhood in the urban core.

@Frank Leone I'm looking to buy multifamily properties in B or C+ neighborhoods that need rehab or have another value add feature available.

Should I hold the house for this buyer, given that the price she was asking for her own house looks quite reasonable, or should I put my house back on the market, assuming that the market in the neighborhood for that house is fairly brisk.

IF this agency knew the area or market you were referring to, maybe they were right, it's not a deal that fits their scope of work.

1)  The attorney asks specific questions about your situation to see what really fits and customizes the answer. 

But mostly I was pointing out that I could fit 6-8 hipsters or students packing in to visit UC Berkeley or heading to an event in SF.

Also, the price point in Rockville can vary dramatically by neighborhood, and understanding the school boundaries. 

Lots of major improvements in the city, AAA baseball might be moving in, developers flipping entire neighborhoods I wouldn't have walked down last year.  

Patrick green , the only thing I did was drive around my neighborhood and look online so far.