This challenge may cause you to take the path of least resistance and pursue a 2-4 unit with a residential mortgage.

But it also comes with more risk in terms of evictions and damages - which you can never collect for.But STRs don't have any issues with evictions and damages are typically covered by the STR insurance or sometimes the Property Management company has its own insurance too.The other thing is that, on average, STRs tend to generate more income than LTRs. 

I have some auto-denials in the "review phase" based on landlord reference such as numerous late pays on rent, numerous documented lease violations, and move-out damages exceeded collected deposit... but still have yet to enter the "landlord reference/review phase" of my screening process due to the details on their CBR's as noted above. 

They want to ensure that the property NOI is amply covering your debt service, and therefore able to cover the yield on the mortgage bond / MBS.As a quick example, let's assume that your property NOI fell significantly, because you decided to simultaneously renovate 25% of the units all at once (taking them offline, and causing NOI to sharply fall for 2-3 months).

This hurt their credit in each other cases because they had those credit cards open for many years with high credit limits so now they not only don’t have those cards to use, but because they had them open for a long time with high credit limits when they got closed on their credit reports it caused their scores to drop significantly.

Think about what you think is a reasonable number and get back to me.two days later she says 50K due to all of her furniture now having mold damage.

We had a roof damaged in a hail storm and got it replaced and paid (minus deductible) via an insurance claim. 

To top it off their contractor used a saw to remove their lockbox and cut into my front door badly damaging it in several places, and they will not address that either.

With rates dropping to under 3% now with extremely limited inventory any bump in demand will cause prices to increase not decrease but again it’s all economics that will determine value.

We recently bought a property that we have found out within the first few weeks of owning it that is has VERY SERIOUS drainage and humidity issues and lots of previous water damage that the sellers did not disclose.