Hi @James Free,I'm going to assume from your question you're just starting out and I'll answer based purely on my own experience.

These basic exceptions also apply to note sellers and buyers, note investors, you can act personally with your money for your personal portfolio but if you are "in the business of" then you are getting into a brokerage activity.I won't say that the lender's matrix above is pure hog wash, but it is not close to accurate. 

Yeah you might have done better from a pure ROI perspective but you've accomplished some goals you had and learned a lot.And that's not a terrible rent:price ratio for PB.    

The answer is it depends...There are score driven hard money rehab programs that allow investors with mid FICOs as low as 550 to potentially qualify for a 65 ARV loan---there are programs that are purely equity driven and don't consider credit score/history in their decision factor...There are very few rehab loans that advance rehab funds in before the actual work as done (there is a program that will advance up to 10% at closing, but you need mid to high 600 score to qualify)---as you duly noted, most operate on the reimbursement model.

From a pure rental POV, it's another story.

At the same  we lived off one income and invested the other in pure rentals.

Also, the third bedroom is off of the master without direct access from the main living area, so it is not a pure bedroom (although it has a built in closet and a window so it technically counts). 

The property is scheduled for move in and will rent at a rate that provides approximately $360/mo of pure cash flow.

The property is scheduled for move in and will rent at a rate that provides approximately $360/mo of pure cash flow.

Now if the current owner/occupant ends up being moved to an assisted living facility, the children aren't enamored with being a landlord, the children get job offers out-of-state and move away, etc. then you might be able to has a purely fiscal discussion about selling.