Once DD has stared and I can flesh out the operational details like what will CapEx look like month 15 when I have to replace XXXX and this county adjusts taxes biennially so in month 21 I can expect a 10% increase.

Waiting on the appraisal which should be completed in a few days, it will be interesting to see if they appraise it at a 3 or 4bdrm.My current plan: Increase final selling price by 2.5k and ask for 5k back in seller concessions. 

I do not want this deal to go through, and I would still probably be willing to move forward if they matched my increase in price with an equal increase in seller concessions (so they they have no net loss) .

From a business perspective it’s very simple, raise the rent to market value / increase profit.

We also told them that the rent would increase by $50. 

The property value is not increasing year over year?

Finally, any advice on what I should include in the policy to make sure I'm fully covered in regards to manmade and natural disasters?

I'm quite used to increasing leverage with each 1031 exchange.

They have a combined 45 years of experience with rehabs, new construction, and commercial in Chicago so I have naturally learned a lot from them over the years and tend to trust their judgment.My questions - Is 25% down overkill?

Not only does that help the military member, but it increases mission readiness and will also help the landlord receive their due rent payment.