The problem with that is if you are trying to buy a property and the common rents are less than the "midterm" rents it will get denied in underwriting. 

Once the application comes back I approve it or deny it based on my criteria.

Any information and details on confirming or denying whether a RSO can be used as an MTR would be helpful.2.

What would you do in this case esp if they deny paying for the repair?

Again they denied it.

And yes, the risk is that we're paying for the due diligence work up front, to potentially get denied in-front of the City Commissioners.What I will say is that entitling a 8-10 unit subdivision is the same amount of work and time as entitling a 50,100, 200+ unit subdivision, so it makes more sense to go larger.

If so, it could be that they deny coverage if you are using as a STR.

So that I find out doing my own calls to find out why the offers was denied even was just so close from asking price and Im willing to go with second offer, I found out that the place has reserve litigation issue and my agent who I rely on and keep emphasizing how we need to work smart dropped the ball again on me and didn't due enough diligence even he claims he knows how to do property searches etc etc which made me feel its an extra that he has, it was very sample to just ask the listing agent so not to waste my time neither his sending unnecessary contracts...

Oh and dont think about STR's...Charlottesville, Waynesboro, Staunton, and Harrisonburg have been denying permits due to affordable long term rentals. 

They were clearly hoping that I’d fold, denied having lied, but (surprise!)