no filler needed.with NO it is similar, we feel are afraid of uttering it and follwing with a long explanation why.You don't need to explain your decision or the math behind it!  

The explanation I have received is that they do not insure properties that are still occupied by the previous owners. 

If not post in the appropriate geographic forum asking for specific recommendations you will get help too.

Yes, 3 states currently, though majority of the properties are in one geographic area to help with economies of scale.Do you manage the properties yourself?

My advice to investors is keep clean records for all income and expenses, with clear explanations of each transaction.

Usually a good explanation of how you want to "maintain the upkeep of your property so it helps keep property values up in your neighborhood" should help get them off your back.However, soon we received a letter from the HOA attorney with request to remove the privacy walls and the foundation support bars with fines for every day not complying.

Will this be a sufficient explanation that will likely allow my loan to be approved? 

The more specific the explanation, the better.

Either someone is paying the taxes on these properties or after a couple of years they are likely to be up on the tax sale list (unless this has happened already and they've been purchased but the new owners cannot do anything to them for a least a year after the sale).Got a GIS (Geographic Information System) online in your area. 

Thanks for the detailed explanation!