The principal for the property currently sits at about $86,820, with an Escrow balance of about $850.This is obviously a very bad deal as it is; my question is what would be the best option to drop the mortgage every month in order to get a positive cash flow, either by refinancing the mortgage, or getting some other loan at a much lower monthly cost?

We ultimately plan to rent out both the primary residence and the back unit and I believe we can get at least $1000/moth positive cash flow, maybe more. 

What you do with the money has no impact unfortunately, It's earned income.

Here's a few blogs to review that might help you as you enter the syndication game and position yourself favorably w/investors.https://www.biggerpockets.com/blogs/9145/65780-syn...https://www.biggerpockets.com/blogs/9145/53959-vet...

Even though Cap Rate isn't that useful in determining what a small property is worth since vacancy can have a large impact on the NOI, it would be useful to see what others have sold for.

Not closing on time or having another agreement in place ahead may impact things as that was the agreement.

BUT, the positive would be:+ Catagory A neighborhood with stable renters+ Betting on property value will increase over 10+ yr given the neighborhood+ Turnkey rental, leases in place till 2018Would these positives balance out the lower CAP rate?

If I were representing you, I'd strongly advise you against it.At this point, read over the contract closely and see if there is a way out.Failing that, talk with the builder and see if you can work something out.If that doesn't work, try talking with an attorney to see what can be done.If there's no positive result there either, you may be stuck with it for the remainder of the first year. 

It was a blast to be able to have such a positive impact on the homeowner and we look forward to having the same positive impact for the new homeowner that buys this charmer!

Positive Net Cashflow) on a residential house hack the exception verses what my goal should be - to get as close as possible to cash flow neutral and save money on paying for rent.