IF they don't, they force you to make conservative assumptions (e.g. expenses, capex, vacancy, etc.) and you end up putting in a lower offer.Another tactic / strategy is to simply give him his price (with the proper out clauses), get the information and then re-negotiate the price.

Real estate investing is a bit easier to learn than successfully trading the stock market, but to both take an intimate knowledge that there are few short cuts for.

You do not want them as tenants but should never simply allow them off scot free.

Seems pretty clear cut.

Seems pretty cut and dry to me.

I've done quite a bit of reading and research, and though I will continue to do so, I DO feel that at this point the only thing that is going to actually further my knowledge or get me going is real life, hands on experience...So I'm ready to bypass any more "feet wetting" and simply dive in!!

But if you're trying to eliminate PMI on a current loan by simply getting a new appraisal and illustrating (via principal pay-down and appreciation) that the equity position has increased, you would need to show 35% equity (65LTV) via that new appraisal. 

I realize this is worlds apart from what I am talking about in this post, simply letting you know I have a bit of R.E experience. 

My goal over time is simply to create a modest portfolio (maybe 5-10 properties) that helps me on my way to financial freedom; I have no aspirations to become a professional landlord or big-time real estate investor. 

BTW, check your financing addendum to see what the cut-off date was for the buyer notifying you they couldn't get financing.