I also don't want to lose an earnest deposit on a co-whole deal, or attract attention of the real estate licensing board. 

So you are still attracting renters.

I have conservatively valued and suggested a sale price of $160K-$165K based on increased values the past 3 years coupled with the challenging location and current condition.One of the neighboring businesses is interested and threw out the possibility of seller financing.

In my area there are several 10-20 unit apartments that are $500-600K.As attractive as this seems to be, I wonder if it's too much, too soon in the world of real estate investing.

The refinance does not trigger an increase in assessed value.#5 Property is cash flowing much higher than my estimates, and in a B+/A- neighborhood (see below)So for the numbers, I am still refining our pricing strategy, but so far I am seeing ~$4,000 in gross revenue per month on the entire property. 

So the too big house method puts you in a good location, increases your choices of where to buy, and potentially has higher rental income and appreciation.

Just after, the book talks about improving the property so rent brings in more money per month/year, which increases Gross Rent Multiple. 

I am also concerned about getting MDF cabinets, because I read they are especially susceptible to water damage, and because I am not sure they will be good enough to attract a potential buyer for my house.

If you gactor in that rents should have increased over 5 years you can use that to offset even more without cutting into cash flow.That being said, I have started to make extra monthly payments towards principal on the notes that will come up in the next 3 years for refi, which will bring the baloon amount down significantly.

It’ll have less attractive terms and rates, but you don’t have to wait that 6months. 3.