I'm currently looking into flips so I can build a bit of quick capital that would sustain the rentals that we all strive to get into.

I’ve heard: 1. market is to high it can’t sustain forever2.

So that's the crux of the matter...If I can convince myself that I can sustainably add $3k of value every month to my RE business, then I could see myself stepping away and focusing on that full-time. 

The higher your score, the better your rate and I doubt they mention the self sustainability requirement for FHA when it comes to 3 and 4 units until you get pretty far into the transaction.You need a decent broker that can help you navigate the mortgage waters; not a bank or a clearinghouse because they don't have the breadth of products you need.  

So with that being said why wouldn't they care if the value of that property is sustained? 

Food, clothes, cars, houses, high unemployment, etc... and no one believes that it is sustainable.   

On the other hand, if you DO get an earthquake policy, your cashflow is a bit lower (but still sustainable), and you're protected against that disaster scenario (in theory, at least)....so, in that example, it seems like an earthquake policy would make sense, even if you have minimal equity (I'm guessing most investors are willing to sacrifice a bit of cashflow if it means protecting against potential bankruptcy)...Now, let's flip it around--let's say you only owe 100k on your rental that's worth 415k, so you've got solid equity. 

Things just don’t make sense right now, and whatever it is, is not sustainable.

I just worry that she wont be able to sustain it.  

If your looking for a sustainable and turn key market, Omaha Nebraska is the place for you!