@David N.there are some  lenders that  can go to 90% ltv on vacation home purchase  (  .....benefit on rental prop purchase is that you can use  a portion of the new property rental income to help with qualifying if needed ...pricing is similar for  2nd homes and rental properties 

Typically, the deal has to pencil out with conservative numbers in order to qualify. 

A couple hours after I approved their application, another person that actually does qualify and has all funds available now applied.

If not, that's my recommendation.Some of your improvements may qualify for depreciation in addition to your building value depending on the scenario.

My focus was on 5 qualified buyers at all times and looking for seller leads. 

He is actually VERY qualified and gave you great advice that you initially were going to ignore:(3) Understand that no matter what property you buy, you are buying someone else's problems.

This usually occurs if the buyer “qualifies” for the loan and an incentive - higher interest rates, transfer fees, etc. to the lender is provided.  3 - the parties entering into  a transaction, take steps to conduct business in a way that doesn’t “alert” the lender to the fact that the property ownership has transferred.  

Now I have equity locked in and couldn’t qualify for a heloc due to credit as well.

Buy the buyer qualified for the loan with the poor cash flow implying they can handle the poor cash flow. 

I called him back and told him I wouldnt touch that contract with a 10 ft pole , and I cant do business with someone who wouldnt qualify to rent any of my properties .