As long as the rents can cover both the current PITI and proposed P&I payment, credit is at least 680. you should be able to qualify. 

You are LOSING money because you didn't even raise rents to cover those increases!

The HOA covers all the exterior.What was the outcome?

We have been told that fha will not cover this since there’s are two residences on the property.

I think that helps cover the possible fluctuations. 

He did a book for Bigger Pockets, but by large Bigger Pockets is not so pro Sub2 so not sure why they allowed this other than he is an expert at self promotions, etc..

I’ve edited this version to comply with the rules and removed any references that could be perceived as self-promotion.

If the market rents do not cover the mortgage, you may do a no ratio DSCR for a higher rate/reduced LTV  Which most likely the 1007 will be nowhere near the revenue generated by a PadSplit operation.

Now let's say I find a triplex that covers the 1% rule but combined cash flow from all 3 doors is roughly $150-$200 or would you want to keep it at $150-$200 cash flow per door with the 1% rule applying? 

I hope your attorney can help you and remember to stream your energy to find the next deal yourself so you can cover this loss; this is the most helpful way to let go of that feeling of being scammed.