You may want to consider that the interest rates are continuing to creep up, and in 6 months they may be higher than they are now as a result you may want to hold out a bit longer on the refi. make sure that the deal at whatever rate you choose meets your financial objectives just incase you cant refi for whatever reason at the time that you initially projected.   

There are always people that need to sell or want to sell for their own reasons.

Same reason as above.3.

If utilities are included in the rent, then it would be reasonable to adjust the rent based on how many people will be occupying the unit.

@Fletcher Caulk for some reason I don't think it tagged you in my answer.

I understand that some sellers would rather not take a huge lump sum on a property for tax reasons. 

Is there some reason she does live in the house herself?

I've seen it over and over again, a couple could have worked out the issues, (Yes in most cases they can) but they won't just step back and take a deep breath and think about what they are doing, They married for a reason and that reason still exists.

“The reason a VA borrower isn't allowed to rent out the property is because of the primary occupancy rule.

Any reason not to offer 100k or lower, in light of the work involved?