@John Leschber I've made mistakes too.

Best candidate, worst, somewhere in the middle.  

I made this mistake on my first rental I was renovating my first single-family and I left the blinds up on every window and you could see it was vacant and getting worked on and someone broke in and stole my copper plumbing.

I am too small to make a big mistake and the numbers here make that much harder. 

There's no correct answer as lender's/investors change their guidelines/price so much that one month one lender can be the best at DSCR in price and guidelines, then the next month have changed guidelines and worst price.In the non-qm world I think relationship building is important.

People are successfully investing there and investing in the "worst place" to invest of CA. 

I have to chuckle a bit at naming the "worst" villages to do rehabbing in based on how tough inspectors are.

So, a one time or minor “mistake” is not going to be enough to pierce the veil.  

Myself and family truly loved the property and house; just want others opinions on if this may be a mistake to proceed, or does this appear common practice for the age and location (upstate New York). 

I have gotten a number of mistakes in the distributions, but they always seem to correct them and say that their new system will obviate that kind of thing going forward.