I've bought about a half-dozen REOs in the past year for LESS than my original bid...Basically, I put in an offer, got rejected, waited for the price to drop, put in a lower offer, got rejected, blah, blah, blah, until finally I put in an offer that was accepted...each time LESS than the original offer...I've purchased multiple REOs for nearly $20K less than my original bid on the same house in the same condition...And only once did a bank come back to me to ask if I was willing to resubmit my original bid before dropping the price...

It's currently zoned in a commercial zone that doesn't allow the multi-family rental usage, so if we need to pull permits for any construction to improve the property, the city will reject it unless we convert the unit to a "hotel." 

A lot of landlords seem to reject them since they have no credit or rental history, but from my experience, they've been very reliable as tenants.

Second, it is a tough field to enter right now, be prepared for a lot of rejection and some creative problem solving.  

I rejected them because they did not have continuous income at a level of 3 times the rent, even though they were at almost 6 times the rent at the time they submitted it. 

Lot's of offers and rejections. 

Personally I wouldn't be discouraged after being rejected on 3 deals, especially if you're making low offers in a hot market.

It was just after 2008 so I got real used to rejections. 

It sounds like Your real estate agent should already known that before you got so involved in the deal only to be rejected .

Just trying to understand they rejected your first offer which is probably better than your second offer.