Utilities will be an issue.  

I think communication seems to be the issue here especially with your comment on how the PM is unresponsive.

I’ve often seen this happen where initial approval is given, but debt-to-income issues arise once they discover you’re purchasing another property.

Another one was seller-financed for a few years before refinancing into a conventional loan around 2018, again no issues until this year.

Cash offers are often particularly appealing to sellers because they eliminate the uncertainties that come with financing, such as loan approval or appraisal issues.

This issue also naturally drives up deductibles.  

The issue we are running into is that lenders are not recognizing the excess amount he earns as income, therefore it looks like he will not be able to afford any loans that he would be approved for.

Had an issue with trying to self-permit a build a few years back that was an HPR but had an "A" and "B" designation.

Those stilled cashflowed mostly due to insanely low interest rates.3) Investors started chasing Class C rentals in 2022 when Class B rental prices AND higher mortgage rates didn't allow cashflow at purchase.4) Investors are now chasing Section 8 tenants as the cure-all for Class C tenant performance issues, so their Class C properties ACTUALLY cashflow.

I think the issue here is how long Dad has been out of work.