From the little I have read, my best guess is that it's no small game of skill - evaluating the note(s) for performance potential (and possible fraud?)

There are anti-fraud issues where some lenders will ask a seller for a verification, but that isn't relied upon for underwriting. 

The primary analysis uses the same metrics to determine the net cash flow to the buyer.Sure the notes and qualifications are different, but the operational day-to-day conditions are identical. 

I really never understood what was taught about wholesaling among those that do it and what is recommended by those here on BP... however I just don't think you can have a long term stable business built on deceit and fraud. 

That would be mortgage fraud.

Would the bank see it as occupancy fraud?

Trying to figure out exactly how much time i need to be physically present so as not to commit fraud or lose the loan.

Our neighborhood is challenging since no house is identical and many homes are a lot older.

My financing will most likely be almost identical to what you listed above using an FHA loan.  

However, if you and your realtor got your numbers right, then it's less about the price and more about standing out in the crowd.The problem I've seen is that while you listed your property for 149,900, there were dozens of other houses identical to yours that went on the market at the same price.