There is also a 90% chance that the loan has been sold off like Chris outlined, so I doubt the "big" boys that buy pooled mortgages on the secondary market are going to look very far into it.

Since then, I discovered it's outlined in @David Greene Long Distance Real Estate Investing book. 

@Alex Clift I agree and follow the protocol that @rob @Rob Beland outlined.

One is a promissory note that outlines the terms of the loan. 

Hello Angelo,I would have probably done two things 1) checked out those comps at $155k to see what kind of upgrades and finish were done on them and tried to do something similar on your rehab 2) Paid for a subject-to appraisal outlining the repairs/upgrades I was considering to see if there was a significant increase in value before spending $11k in cosmetic work.

I have outlined that I will now try to find another tenant for the unit and if that happens within November, I will mail her back the difference from the one month deposit.

My tenant paid the rent late once and I enforced the 10% penalty as outlined in the lease.

What happens to the security deposit should be outlined in the purchase contract that you made your offer with  and both parties agreed to.

You outline a very good strategy there!

My husband and I actually pulled out and read through nearly every closing document we received and found the clause that outlines the loan expectations, and it turns out that we are within the loan guidelines because we complied with the one year owner-occupied rule.