I look to develop relationships with my bankers and go from there but understand they are not the most flexible people based on the law and regulations. 

Memphis has a very strong rental base with additional growth potential in the coming year. 

Or you can refi as two separate condos, or as a duplex depending on what fits your needs, or maybe you sell both off eventually, but having the flexibility to exit and a couple different ways allows you to pivot based on outside forces.  

Based on what you have said here, it seems like your A/C damaged them, and asking for payment to be made whole seems righteous.If you pay, talk to an attorney to make sure its a one time shot, and that one payment settles the issue 100% forever, so they will not come back for more later.Good Luck!

Based on the numbers I could probably rent for 2450.

I live near an army base where there is a high turnover due to it being a training post for all branches of the military.

Should I proceed with my offer, requesting credits based on the higher quote, or should I reconsider my offer altogether?

I am grateful for the opportunity to tap into their giant customer base.

The Riverside market (St Vincent's) and San Marco (Baptist main campus, Anderson Cancer Center and Wolfson's children's hospital) plus right next to downtown cover a good portion of the bases.

It is based on your credit score and the income potential of the property.