A few options come to mind: You can ask the seller to reduce the price and see if they are willing to negotiate. 

Wanted to give you guys an update on the renovation with some pictures.1pic : Front of house with additional side lots 2-3 pic.: 1st floor demo 4th pic: Bathroom & backrooms still standing pre-demo5th pic: 1st floor as open shell , all walls down & new sub floors 6th pic: Framing of 1st floor started GROUND/CELLER FLOOR: BELOW 1-2 pic : Pre-demo 3 pic.: demo (All walls taken down, a total MESS!)

As mentioned above by Todd and Cathy, use the leverage.I would not recommend investing any additional money in the stock market because you already have $800K of your 401K invested in stocks/funds.You're in great shape, keep going!

My background in real estate/rehabs has been full gut job remodeling houses that my parents have lived in as well as remodeling my current home, at one point I was a mortgage loan originator (helps knowing how mortgages/financing works), and I'm currently in the process of getting my home inspection certification to help identify issues for my own benefit was well as generate additional income.  

is there any way for the bank to reduce that $25K owed?

Right now the trend is toward density and reducing carbon footprint.

So you do all the work and because of this additional language, if added, you get no commission?

I've heard recently that the State of California passed a "ADU" law (Additional Dwelling Unit) which allows for a conversion of a garage to another livable structure.

I know a lot of people have used FHA loans to reduce the down payment size, but if I already have a home that is my primary residence I guess this is not an option?

[I also had to limit how many 10's she could have because if not everything will be a 10 for my wife ;) ].Hope that helps, and hopefully others can chime in and bring some additional perspectives!