The spreads to make that an economically rational decision haven't been there for a long time.

The agent replied to me and said that there are no rental restrictions but they are planing on having a rental ration @ 57% HOA.

You can generally leverage at a ration of 4 or 5 to equivalent cash purchases - more if you are really good.

Do they refinance the whole amount or I would still owe 25% of the loan to value ration ?

IMO if I was in your situation I would fib your wife by saying that it was actually the person's dog that died on the property (and then speak to the neighbor so they would give the same story) I'm not an advocate of lying but in this circumstance I would jusitfy it, because 1) It would give your wife peace of mind (because she does seem awefully afraid of this type of thing without a justifiable rational basis) and 2) Potentially save you from having to move to a different house.

For the good people who are simply desperate and acting out of fear, a gun gets them to stop and think and be rational and then gives you a chance to calm their fears and share some food with them and help them put a plan together of what they're going to do.

DSCR is debt service coverage ration.

So I really did give your advice some rational thought. 

IE brand new rehab and brand new tenants.. these are called proforma's and they are best educated estimates.. and each company will prepare them differently and rationalize why they present the numbers differently as well.Like some will add in appreciation numbers over time to come up with a nice looking 5 year trend or return number.. other do not put any appreciation in...

You are attempting to be reasonable and rational with a tenant that is neither.