The first two years had weak results while we were turning the property around and that reduced the value.  

I can stick like $30k into a defined benefit pension plan and reduce that years income dollar for dollar if I want to earn that much in the first place. 

Does this reduced my likelihood of being approved?

The more a Seller of the partial steps into a loan to administrate thereby reducing the rights of the Buyer of the partial to enforce the actual security instrument the more we travel toward a security.

A reduced maximum exclusion may apply to those who satisfy part of the two-year rule.

As far as I can think of these are my options:The seller can carry a note on the condo for the 50k differenceI can give the seller a 2nd on one of my rental properties for 50k as security for a noteI bring 50k cash to close ( I don't have $50k additional cash )She reduces her sale price to the appraised price (not likely )Roll the dice and try a local lender that the realtor suggests (realtor has asked this several times)I have asked the seller to reduce the sales price to meet in the middle, but for discussion lets assume the price will not change.I haven't talked to my lender about what I can do but I thought I could get some ideas here before inundating her with requests and questions.Some general notes.

I'd like to try to reduce the effects of zero maintenance during this period and implement an ongoing maintenance program for appliance longevity.

At 5% that would be $542/month which reduces the positive cash flow from the property to $95 per month.

The backyard does not provide space for that setback, and the homeowner wants to build the tool shed on the slope.I read that "Recommendations by a licensed geotechnical engineer may be used if a foundation investigation report addressing the reduced setback has been approved by the Department."

If I were in your situation I would increase rents to market (or close to market) per sq. ft. costs (maybe give them free months rent or reduce slightly if you will not have to pay any TI or broker commissions) without increasing their square footage.