So based on your explanation, I see that the offer has not even been presented to the bank. 

Get the numbers, or projected numbers, and explanations of them.

CapEx is one of the major things I see newbies get wrong and as a result get in trouble over the long term, so great question and I hope this explanation helps ...  

I prepared a letter of explanation with the desired outcome of setting a call or meeting to discuss but before I send the letter out what other tips or documents should I enclose to showcase my legitimacy as a buyer and my seriousness specific to this property?

Dave Foster thanks for the explanation, I have just been soaking in the information on this site.

You can give as much or as little explanation as you want.

What if you have apartment buyers (5 units +), then you are talking about a totally different set of rules to know.Your questions:1)"...what price range (or location) do you find the most homes" - There is no such animal, based on my explanation above.

@Brandon Leong Thanks for the explanation!

I know, it's not very clear on this explanation but the "up for sale" thing is only if the borrower (you) has the home listed for sale under his/her name.  

I have been looking into the license and it all seemed so confusing so I greatly appreciate the explanation and numbers in your post.