I travel to a lot of the smaller towns/cities around Edmonton with my work so I'm also looking at stuff a bit farther out where prices are lower but the cities are big enough to have a solid pool of renters.That sounds like a pretty attractive strategy.  

Her interest rate has to be good enough to make this attractive to someone.4.

My options are:1. keep price at 375K and wait2. drop price to 370K or even 365K (lower than what similar units sold in May'15) to attract buyers but TBD.

You'll have a much more predictable cash-flow from each unit, which adds value to the property, which makes it 1) more attractive to potential buyers, but also 2) more valuable as leverage.  

The unit you're looking at with those terms doesn't look attractive on any of those counts.

If your property is well cared for and priced right you will attract good tenants.

Now your at 422k+ That may not leave enough spread for it to be attractive. 

Additional work that attracts target tenants and brings higher rents or lower expenses.

It is why often times why a good mortgage broker can be very competitive to direct lending quotes (often times even more attractive) and make the client's life easier by being able to shop many sources for them and have multiple back up sources, should the loan get rejected by the lender's underwriting dept.   

I have yet to purchase one but their warranty and upfront due diligence seem attractive.