Regardless, once you waive your due diligence period, you're out of luck.The only way you can get them to pay is to prove that they knowingly and willing misrepresented, aka fraud.  

I can understand not wanting your entire portfolio occupied with Sec 8 but by nixing them all together you are cutting out some great tenants with guaranteed income.I understand your want for strong income but remember that the area doesn't determine the amount of cash flow, how you purchase does.

I have completed 5 flips over a period 21 months and this will sixth project.

Remember to get them under contract first so you don't lose them, then do your due diligence while under the contingency period.

I noticed you asked the plumber to bring in his costs to $6k and you are basically telling him he has a guarantee of steady work with you, if he does cut costs.

You can play around with a typical amort. pay down in that time period and then plug in a higher interest rate to see what you could do to stay at the same cash flow.

I guarantee you that the IRS will respond.  

@Lesley Govan- I work with Guaranteed Rate.

Are you aware of any lenders with a short seasoning period ( no more than 6 months) that will refinance off of the appraised amount and will do a cash out refi? 

Contractors are licensed, period.