HelloI will be buying a property from a relative with an LTV of .35.This will be a primary residence.Basically I will be financing the outstanding loan the relative currently has.Do I still need a down payment?

There have been some cases like in Jerome that the city has tried fighting STRs in their neighborhoods, but most of those challenges have been put down. 

Look like eventually the buyer could not do anything about it in their case.So if you  want to fight, try to find an attorney and study the contract, to see whether worth the fight.   

and 4k in outstanding balance, your % of credit used would be 40%.   

Biggest arguments are that the benefits from having a legitimate selling agent (legal stuff, fighting for better prices, etc) far outweigh the costs involved.

While the majority of biggerpockets fights with me about my claims and strategies, we friggin crush it.So be careful when you listen blindly to others here when they have no stinking clue what's up!

As @Wayne Brooks mentions, if that cost will sink your battleship, it may not be worth it to fight the war.

There are very desirable, trendy neighborhoods, that people are fighting to live in. 

The views are great and the amenities (gym,pool,tennis courts, golfing, etc...) are outstanding.

So in this instance, the account sweeps money from that checking account, and has it sit on your outstanding debt balance.