I'm not making that up, that's the qualification standard that's applied.

I would tell her the home isn't meeting her standards, so she should pack up and leave.

Since you posted this under "house hacking", then you might be looking for a standard type of financing.

the house has a bunch of equity, being worth about 750k when fixed up.I  know that on a standard convenetional mortagage foreclosure, there usually additional fees such as unpaid interest, attorney fees etc, apart of the princiapl balance.Is there a way to conservatively assess what will be the actuall "Pay-off" on the 1st?

Keep in mind, if there is enough depreciation (IRA can't take the bonus depreciation, need to use standard depreciation schedule), that depreciation might negate any positive income.

A qualified professional appraiser will generate a comprehensive analysis considering factors such as sales comparisons, highest and best use, market conditions, and income generated following Uniform Standards of Professional Appraisal Practice guidelines.

•Spreadsheet Formula:•While there’s no standard spreadsheet, you can create one using the following steps:1.Determine Original Roof Cost: 2.Calculate Accumulated Depreciation: Based on the original roof cost and the number of years it was in service.3.Calculate Remaining Basis: Original roof cost minus accumulated depreciation.Note: TurboTax may have limitations with complex entries like partial dispositions.

Here in MD (and I think most everywhere elsr in the country), a Realtor can prepare and provide standard lease forms and disclosures.

Pretty much every time I talked myself into making a compromise on our minimum standards I regretted it later.

Lower the price, not your standards.