Although they are located in the same neighborhood, he made no adjustments due to the age of those homes.We have sent those listings to the lender and the appraiser to reassess.Also approached the seller but they don’t want to reduce the price at all.

You don't get taxed when you take out the money as you pay taxes on the net income when earned.  

@Bob WilsonI would like to know more about how 35k can earn me that type of cash flow.

I do have property management in place, so could self manage if thing went awry to reduce my monthly expenses.

HH income is about $130k excluding bonuses and we have no other debt.I'm having trouble determining which scenario is the best approach given the details.Scenario 1: Refinance the $88k to 30 year, no cash-out, drastically reducing the payment for us now and for rental cash flow.Scenario 2: Cash-out refinance up to 70% LTV.

When you take out full height walls you reduce the structure's resistance to wind and earthquake forces. 

Time to put your hard-earned RE investment dollars to work where your assets to society will be appreciated. 

Recycling isn't about making people feel good, it is about reducing landfill waste, keeping the air clan and reusing natural resources to reduce cost.

You can see if the owner is willing to hold off for 6-12 months while you hustle to earn the money and then buy it.Personally, I don't suggest you borrow your way to wealth.

If the property owner Properly contests the lien, the time to file suit by the contractor is reduced to 60 or 90 days.