No matter what they should still give you an estimate. 

In regard to the 4k between appraisal and contract price if the seller is unwilling to come down and you still are happy with the cash-flow, I would ask myself if the 4k will matter in 2 years?

Like mortgage defaults, and other debt obligations, non-payment of rent is a civil matter of public record and concern.

I just want to make sure it is legit to present a transactional funders POF letter, and do a double closing with these types of properties as I understand they keep the EMD no matter what

There are probably only a few people on here I would take advice from in real estate and other matters associated with it.  

However, it will be difficult to attract families with school aged children because of the schools situation.Anyway location matters more than price.  

Colorado is a progressive state in this matter and we were actually the first place to have Buyers agents.

none of the rules matter, only profitability.

@Bob Malecki - perhaps you wouldn't mind giving feedback on one more matter.

Not to hijack, but I wanted to thank @Thomas Rutkowski for giving me a different way of looking at some life insurance products for RE investing - the water cooler experts seem to bash those types of insurance products on the basis of hear say...Thanks to @Charlie Fitzgerald for showing your position on the matter.