Make sure you know your state laws.

How many tenants will be leaving jacking rents up that much and, do state laws allow an increase like that?

It is located near the hospital/downtown area so I attract graduate Med and Law Students and they pay their rent.  

From professional to homeowner, I highly recommend pulling a permit and following all necessary laws.

My wife and in-laws are all working together to get our flipping business off the ground. 

If the answer is no - for safety & security reasons, not just because you are too snooty - then maybe the property isn't for you (or at least wouldn't be for me).

Not saying they will lie to you, but everyone does their calculations slightly differently and may not be using the safety margins that you are comfortable with.

The laws between States differ significantly.

Moreover, laws prohibit the licensed agent from compensating you without your own license so you can't get money from the agent by bringing a buyer.Start by working on those objections and see where it goes.

The mortgage industry was not all but halted by the appraisal process and any policy of not speaking directly to an appraiser had nothing to do with law, but policies the bankers put in place to keep ignorant loan officers from breaking the regulatory changes.