My assumption would be that the reduction to my payment due to the MIP falling off would more than offset the increase in interest related to the payment, but that is no doubt something I hadn't considered yet.

Some of these grants give up to 4.5% of the purchase price making it possible to put the extra towards principal reduction and also negotiate some repairs from the seller.

At the very least you can track price reductions and days-on-market for specific properties on (most of) the free services.  

It hasn't been on the market long enough to have any price reductions.* Listed at 75,000* ARV 135,000-140,000* 3bed/2bath brick - stripped to the bone - needs floors, bathrooms redone (missing sinks and toilets), kitchen redone, new heat pump, junk removed, holes in ceiling and in walls, paintingFiguring offering roughly 56kThe thing is, we found out from neighbors that the owner fixed cars and dumped a bunch of oil in the back yard.

If anything comes up, ask for a copy of the inspection report and use that to negotiate a further price reduction.

Over the course of a year, a $100.00 reduction in the rent is $1,200.00 in rent coming in to the home, and potentially the home staying vacant for another month.

Has your agent strongly recommended a rent reduction?? 

Perform your inspection (or send in your project manager/GC/boots on the ground), put together a scope of work to get it rent ready/flip ready etc, submit these line items, corresponding cost & overall price reduction back to your agent and see how the seller responds.If the seller does not concur/will not budge on the price, you should be able to withdraw your offer based upon your inspection clause.

Maximum Basic Standard FinancingSingle - $271,050Duplex - $347,000Triplex - $419,425Fourplex - $521,250FHA Basic High Cost area limits are:Single - $625,500Duplex - $800,775Triplex - $967,950Fourplex - $1,202,925Here is a site to look up Maximum financing with FHA;https://entp.hud.gov/idapp/html/hicostlook.cfmMaximum Financed Properties The maximum of four financed properties includes the subject property.Inducements to Purchase Certain expenses, paid by the seller and/or another interested third party, on behalf of the borrower, are considered “inducements to purchase” and result in a dollar for dollar reduction to the lesser of the sales price or appraised value of the property before applying the appropriate LTV factor.

We would have to re-duct the whole house so it is not going to happen.A bigger unit "might" solve the problem.