I was also thinking of paying lower rates, but paying a percentage of profit on the refi. 

Can I draft a new offer to purchase at a lower price than the numbers he just gave me? 

However, i am curious on your thoughts on whether or not to pull the Max out 85% vs a lower amount.  

As you get more experience, they see you paying your loans off on time or early and youre making good returns they will lower your rates. 

When it comes to valuing the below-grade vs above grade square footage the appraiser gives the basement a lower price per square foot.

I would personally go the other direction and opt for the lower mortgage payment. 

If you are not a STEM major or you have a lower income earning potential, then you have to be even more careful as you do not have a lot of room for error. 

That is a good point about adding buffer in the rehab quote and time frame.I will be sure to add an extension request clause.Are you suggesting I ask them if I can lower the earnest money?

She is willing to sell it for what she owes.Numbers on the deal-95k 1st mortgage @3.875% ($890/mo) - her insurance is $2440/yr ($203/mo)- I was quoted at $650/yr ($54/mo)- her escrow shortage was $896, but if paid in full, her 1st mtg payment is $815/mo-10k 2nd mortgage @14.9% ($217/mo)-35-45k estimated repairs (I would do some work myself to get the cost down lower than 35k)-ARV is around 160-165k-Rent market ~ $1200/moMy thoughtsIf I paid off the 2nd mortgage (10k) and got a better insurance, the new mortgage would be around $613/mo.

If you're OK with a lower price for the condition, then you may want to save your cash.