@Sri L.I can’t answer all of your questions but I am able to answer some.Because you’re changing use of property, with a lot of down time for remodel and lease up, your ability to attract institutional financing will be dependent on your personal financial strength and tract record.

Now I'm reviewing to improve my system to determine if and when an appraisal is appropriate. 

We would have to determine how much debt her income could support and how much debt your income could support. 

America offers people the ability to pull themselves up by the bootstraps if they want to.What you guys have been through reminds me of JP Dejoria's story of the Eagle and Oyster at TEDxLA a few years back (it's on YouTube).You guys have overcome a lot to get where you are -- Good Job -- and keep on going!!!

Therefore, even if the seller has the ability toforeclose in the event of a default by the buyer, the asset might not be worth as much as it wasat the time of the original sale, and the buyer may have even contributed to its decline in value.

The ability to use the stimulus bill to bolster cash reserves is enticing, but I personally think it needs to be a well defined process in writing to make sense for me. 

If we assume rent is deferred for 90 days due to current circumstances, that would mean regular monthly payments would be due after those 90 days as well as tenants needing to work with landlords to determine how the 3 deferred payments will be made over 12 months.Not in your market and just speculating based on your post.

The Landlord reserves the right to regularly inspect the air filter to determine whether the air filter needs replacement or cleaning for periods or times that are less than six months.

It's devastating and it will effect our ability to get the $120,000 down.Being that I put this under contract when the economy was great, and now its quite obvious that commercial real estate values will be plummeting, is it reasonable to renegotiate this deal?

The potential upside with Capex is your house could be more valuable with the ability to increase rents, along with some tax benefits of depreciation.