I received an email last week stating the county funds have been exhausted and my tenant was denied rental assistance. 

You will likely get one of two responses: Denied, effective November 1 if they approve the amount.Plan ahead for next year for both outcomes.

Quote from @Denis Ponder: Quote from @Lucas Schlund: Just trying to get a better idea as to what the financing process was like for you experienced investors, that did not do all cash. 

Texas- Houston.I had a roof claim which got denied 2 years back for no solid reason.

PLUS, a tenant if disgruntled can abuse the utility and purposefully run the bill up to spite you.

@David GarciaYou'll get denied for both your HELOC and your loan on the MF if you use those terms.

Rarely an issue, save for the abusive scenarios I mentioned.The fun part is education before you make any deals.

This is so abusive and extortionist in nature, and so disconnected from any sense of reality I'd really have to question the general intelligence of the persons presenting such. 

If you don't want a subsidized tenant they can usually be legally denied by credit.P.S.

DSCR requires No income, No Taxes and Commercial requires a PFS, occupancy ratios usually above (90%), Credit scores above 720+ much higher assets for (PITI reserves and overall risk, landlord seasoning, and more.A Heloc can be used in most cases for anything but when you are trying to buy a commercial building which is higher risk, the committee/UW can and in most cases will deny it if they feel you are over extended low assets or with no landlord experience, unless you have a meaty amount of equity to cross collateralize for a junior lien on another property.