Projects due gonsouth for numerous reasons and in these scenarios the financial partner will be holding 100% of the lossHave you ever do a deal similar to what the OP proposes?  

Hopefully there is a good explanation for that and it's not that they couldn't find tenants. 

With all the development going on in Atlanta, there are still certain pockets of the city the have numerous vacant homes. 

There are numerous factors that are making new construction costs higher than they have ever been in many markets.Materials, labor, and regulations have all inflated.  

I'd say about 60% of the time FHA will not work for someone that already owns real estate, but you haven't thus far identified anything that would put you in that 60%, and in fact with that explanation for motivation you just gave I'd say you're odds of "true denial" (instead of "loan originator is misinformed denial") are reduced from about 60% to 40%.

i see two options here 1) you can go back to dad and break it down as hey i cant close on the house until it's vacant and see if he can help in getting them out, 2) offer some moving expense if the lot is really that desirable to you I know not what you want to hear as the investor but it has worked on numerous occasions, 3) you will have to take it to the courts as final resolution so the sheriff can remove them.

They met with numerous others including PM companies.

I'm very hesitant to get rid of the house for numerous reasons that I stated in my last reply but also that rate. 

Ok, here is a simple explanation.

The most logical explanation refusing to play ball by any rules but the cartel’s.