No, they won’t discount the price for a larger EM since they are requiring it for a reason.

My original plan was to rehab and flip the property, but as I approached my close date, it was apparent to me that I could just close and turnaround and quickly sell for a profit. 

You need to incentivize them to mentor you or partner with you, either you work pro bono for them or bring something to the table of value.To your comment about "shady" or dishonest, I would encourage to you be as honest and forthcoming as possible, I don't know about you but I got into real estate because I wanted to do something meaningful, profitable for my family's benefit, I wanted to benefit from my level of effort rather than giving it to someone else, and most of all I wanted to make the world a better place by improving whatever it is I am working on; I want to be able to lay my head on the pillow at night knowing I did everything I could today to move forward in a positive direction and did so with integrity in order to prevent any form of regret. 

(I do not believe that FIL will be very interested in using the proceeds as leverage for purchasing a larger property, but is more interested in a duplex/triplex of similar value).6) the wife and I would co-own with FIL, but actively manage the property Questions:Does this sound like a good approach?

Hey @Aaron Johnson, I am a wholesaler/investor that works with people to find cash flowing properties for their portfolio or flips for profit.

You'll pay the tax on the profit from your sale (not the proceeds being held) but no penalty.

IRS - CPA  You guys are probably a non-profit entity.

That technique works in any market so it really isn't specific to market contractions or bear real estate markets.Does anyone have any suggestion on resources for profiting from bear real estate markets?

The Tiny Home would be acquired for ~$50,000, and he suggests it could generate gross profit of $4000 a month. 

I am buying each house with the hopes of 20k net profit.