Person C gets approved for the loan, but only up to 80% of the appraised value of the house, which comes back at $5k less than Bobs original asking price, which means Person C now has to come up with an additional $20k to close the deal.

Why are you paying $300 in additional brokerage?

Any additional advice on how to proceed would be much appreciated. 

If you have an area in mind I can ask my rep to add it to the list and I would be more than willing to share it with you guys.

.- With house price appreciation, I can buy additional 3 more properties in year 10.- Total Income: Seattle property 2500 + CT rental properties 7*1100=7700 = 10200 - Result = 3.35 million Asset + 10,200 Monthly passive incomePlan C = Plan A + BRRRR:- Buy one Multi Family house a year using BRRRR Strategy. ($250,000)- Repeat this process 10 times in 10 years, then I could have 10 houses in 10 years.- The advantage of this strategy is that I can use my $250,000 LOC over and over.- The disadvantage of this strategy not able to find appropriate deal or not able to refinance.

Only one additional point:  if you make exception for this tenant's request, you can open yourself to all sorts of possible discrimination claims from other tenants."

It costs less than $500 to start an LLC and about $1,500 annual for LLC tax returns.It should save you a good amount of coin in the long run and provide an additional layer of liability protection. 

Keep in mind that they usually find additional damage once walls are opened up and that will cost more.

Since we have additional cash to put the required down payment on a conventional loan I'm inclined to go that way and avoid collatoralizing our primary residence but can someone help me understand the key differences between HELOC and HEIL and why I might be wrong in choosing a conventional loan over the existing equity options?

Among the benefits of this are:1) you can claim the deduction even if you do not itemize your tax deductions2) it can lower your AGI, which may make you eligible to claim additional tax deductions or credits