I am willing to wager an investor jumped into the project with private or hard money based on a very specific scope of work, and stumbled across a major issue with the septic tank or some other fundamental system.

The bottom line is there is a "right way" to invest successfully in other markets as a buy-and-hold investor.Selecting your market comes down to fundamentals like employment, job growth, and other economic factors.

OP's fundamental premise is that lowering rent 15% makes the owner go bust.

Some fundamental concepts are timeless and bare repeating so they become fundamentals for a new generation.

Fundamentally I think 95%+ of the BP members do not understand this concept and they systematically overstate their returns as a consequence.

Just use good fundamentals and don't show the institution a house that doesn't meet all your requirements like resale potential, condition of the property such as newer HVAC, roof, etc.

., no "program" is really going to help you with the fundamentals of dealing with people.

I can't say much about Seattle, but Dallas has strong fundamentals for cash flow and growth, not necessarily appreciation, but population growth.

That is their most fundamental job.Also, they might have mitigated this error by notifying me  before deducting it from the account in May, several months later, but instead they just entered it in May as nothing irregular had happened on their part.So think what this means. 

Fundamentally, the new lender will look at what's on your credit report.