I know the above explanation might sound as though I’m going to trigger a due-on-sale clause; however, this is not the case for two reasons.

 @Rashad EllisHere is an explanation of the self sufficiency rule:The maximum mortgage amount for 3-4 unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.

@Jeff Cichocki Fantastic detailed explanation, your comments above leads me to a discussion on one of the Wholesaling FB Group discussions a few weeks back, about getting paid on a contract.

When I asked them for an explanation of results, they said they needed to gather info.

Either they want to get out of the geographical location or the type fo insurance when ty increase it that much.

I would say if you are a beginner, the geographic distance is probably going to cause you some anxiety over the years. 

@Stan WuNice explanations and diagrams in your post.

I would assume based on your explanation, Ohio may be one of those states that monetary damages are considered adequate, which is what was outlined to me. 

If the FICO score is low and you really like that candidate you can ask them if they have an explanation for why the score is low and if they have proof to back that up. 

Thanks for the explanation!