My current one has given me deficient information twice, and I would prefer to use someone else at this point.

If his hardship does qualify him with his lender, does this mean they will automatically forgive any deficiency after the sale?

It will probably reveal that you have a deficiency in your education.

The Home Inspector report revealed major deficiencies in the rehab and the Home Inspector told me that the rehab was like “putting lipstick on a pig”.

When a transaction is easy, the online lender deficiencies may not rear their head...but when something outside the norm happens, you want someone like Upen that can hold the transaction together.

There might be some dicey pockets where you can cash-flow well but you're basically in a market where you're competing with owner-occupants (they don't need an "ROI") or investors that believe they will make up any cash-flow deficiencies through appreciation.  

The way I understand Idaho law is that if a home has been inspected by someone trained in the specific field they are inspecting then it has to be disclosed...Assuming of course we were notified in writing that there were deficiencies.

It's a large 2 story in a multi-family zoning district so we plan to place 2, or maybe 3 units here but the house needs a lot of work - issues that may not allow us to finance conventionally - 100 year old slate roof that is leaking (bank won't finance with deficiency like this unless it is fixed - something I do not want the seller to do), knob and tube electrical wiring (many insurance companies won't write a policy which all conventional mortgage holders require).

taking in 4,500 monthly on a house worth 900,000 certainly isn't an adequate return, unless you expect more appreciation to make up for the deficient cash flow 

Buyers preference conventional buyers for not only the perceived inspection issues, but most FHA buyers don't have enough money to go conventional, so they are perceived as barely scraping by, as far as the qualifications, and the truth is, most being so close to the edge on cash and qualifying, many don't close at the last minute due to borrower deficiencies.