They have every incentive to overstate ARV and understate rehab costs.

@Erik Whiting I was able to speak with the wholesaler yesterday and had him circle back with the seller and got the price reduced by 4k to help with the understated amount of rehab that was needed.

You either legit don't make enough to afford the payments, or you are under-stating your income (and/or overstating expenses) to Uncle Sam when you do your taxes, while trying to tell a different story to Aunt Fannie Mae. 

I would probably give him a cure or quit, and if he tries to argue, remind him that a 100% chance of an eviction action on his record + some chance of getting in trouble under state law (Florida has a law against service animal fraud) is gonna hurt way more than a 0% chance of you catching a FHA case. 

@PJ Kokesh It is typical of wholesalers to overstate ARV and understate repairs.

We've found that the rent upside can be understated when you're comparing to assets within a radial boundary - our algorithm will identify the most statistically relevant comps in your market and use them to generate a more accurate rent survey.

You may be an “investor” but you are also a licensed RE agent so you are “special” under state law and have additional responsibilities to consider when soliciting.   

Repair expense is also understated with no CapEx consideration.Now I know right off that I'm not purchasing anything for $187K that rents for this low, as I can get that amount in rent for properties obtained for less than 1/2 that price.

So effectively im paying for the repairs anyway which he estimates at $8,000 but they also understated the sale price on one property by $10,000 according to zillow estimate. 

@Jim T. if your unit is not a single family home or a condo then it is already under state wide rent control (AB1482) which will limit annual rent increases to 5% + the Consumer Price Index.