There are tons of people looking for money so lenders can pick and choose.

My question is more what type of approach is more profitable, rather than what type of approach i personally should choose.

Depending on if I choose to rent or flip the house, the rehab could go up or down, but it is in an established & quiet neighborhood with great access to shopping, Costco, restaurants, the Air Force base.

Fall behind on the payments and list it with a realtor that specializes in short sales if you choose this route.Sorry you are facing this.

I try to tell him everything that's essential and he was very involved in choosing the house; even spent his weekends while I was working pouring over the listings the realtor sent us.

If they can't provide the lease, give them a notice that advise them that you will they would have to apply to rent the property again which gives you the opportunity to choose whom ever you want to live there. 

If you don't like rain, choose Denver.  

If you choose to  replace with vinyl that costs you less than the remaining value of the carpet, you're still entitled to the carpet cost.

Sellers and selling agents look for two main things when choosing an offer: Who has the strongest offer (not necessarily the highest) and who is most likely to close easily and with the least amount of hassle along the way. 

When there is not target to hit, like a mutually agreed price, the appraisers and lenders can choose to be conservative.