Because the property tax as a non-owner occupied property is about 3-4 times the amount of a owner occupied property.  

It wasn’t until I ask the realtor to send me a copy of the funding letter did I find out it was a lender, Insula Capital.

Look at lower ARV properties 200k and below and you'll probably find some that can work as a flip or a BRRRR even with current interest rates.I also would recommend meeting with a lender and describing your goals. 

@David Cherkowsky, the lender will take the full rental income reported on the tax return, for that property, subtract it from the total expenses, add back depreciation, property taxes, mortgage interest, home insurance, HOA(if applicable), sometimes repair expenses(must be documented), divide it by the total amount of months the property was in service for that year (THIS NUMBER IS ON YOUR TAX RETURNS, SO MAKE SURE YOUR ACCOUNTANT DOES NOT PUT 12 MONTHS), and subtracts it against your total monthly mortgage payment.

The Role of Mortgage Brokers in Real Estate FinancingMortgage brokers act as intermediaries between you and lenders, streamlining the loan process while finding the best deals for your unique situation.

We ran it past our real estate agent and lender — but I'm all for shoring up.

I work for a hard money lender called Backflip and we have members/investors do flips in flood zones all the time.

Detroit is a market where local have a strong competitive advantage over non-locals so you want to use that to your advantage.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

If I was the buyer's broker, I would have checked myself to protect my client.If they had, then they would have found out it was not a three family.Its a valid point.In NM, our zoning / city doesn't post # of units publicly, only high density residential or low density.