In this type of area having just 1 or 2 properties is ok because your tenant base is higher end and more stable. 

Down payment of $13K including reserves sounds pretty low to me . ( Based on Maryland )

Based on conversations, I think it might be a little of #2.  

Quote from @Dave Schimmels: What is a good way to get accurate rent comps with existing tenants based on the area?

Because based on those answers, you can just get a conventional loan. 

I think it’s a more recent consideration (maybe in the past decade or so based on my digging / anecdotal feedback) and perhaps some of you that have been in the business longer and simply renewing old policies may be getting a pass.  

The analysis also reports that new multifamily development will “remain near the average recorded over the past five years”.Integra Realty Resources’ 2017 Commercial Real Estate Trends Report ranks Pittsburgh #2 on its Top Markets by Multifamily Transaction Volume Based on YoY Change.Pittsburgh’s rental vacancy rate has declined by 25% over the last five years.Pittsburgh is booming with developments (see reference #6), “there is no better place to be a developer right now than in Pittsburgh.

I trust his advise but I feel that its not worth taking a chance and I should ask her to politely leave based on the fact that she has lied on her application. 

Quote from @Glen Wiley: I am not a big fan of those rules - I think they are too simplistic.What will your interest rate be?

Our goal is to establish a structure where the property owner can secure financing based on the long-term lease with the operational company.Any advice or insights from those who have navigated similar situations would be greatly appreciated!