IF they don't, they force you to make conservative assumptions (e.g. expenses, capex, vacancy, etc.) and you end up putting in a lower offer.Another tactic / strategy is to simply give him his price (with the proper out clauses), get the information and then re-negotiate the price.

You do not want them as tenants but should never simply allow them off scot free.

This was considered a win-win situation for both us and our goals (they are retiring and I am just getting started).I secured a cash out refinance in my name in order to pay this family member (and myself) back. 

What else can we do to win this home??

I don't know the terms of the contract and how long it is for, but you need to have the terms on your side if you want to win...There are to many factors, review your contract with your attorney. 

He is winning and you are not.

I've done quite a bit of reading and research, and though I will continue to do so, I DO feel that at this point the only thing that is going to actually further my knowledge or get me going is real life, hands on experience...So I'm ready to bypass any more "feet wetting" and simply dive in!!

But if you're trying to eliminate PMI on a current loan by simply getting a new appraisal and illustrating (via principal pay-down and appreciation) that the equity position has increased, you would need to show 35% equity (65LTV) via that new appraisal. 

I realize this is worlds apart from what I am talking about in this post, simply letting you know I have a bit of R.E experience. 

My goal over time is simply to create a modest portfolio (maybe 5-10 properties) that helps me on my way to financial freedom; I have no aspirations to become a professional landlord or big-time real estate investor.