As he said, this prevents someone from coming back and claiming that under the pile of garbage was grandma's priceless ring and you threw it away.  

Hi Rob-To be clear, you are trying to get a loan to purchase an additional property, as your new primary residence, but your debt-to-income is preventing you from doing so?

It doesnt mean there is anything wrong w/ it, it just is they way they do things to prevent the property from going back on the market or things fall apart after taking it off. 

TreesThe City of Austin has a tree code that prevents building too close to some types of trees. 

Some will have deed restrictions that will prevent you from wholesaling the property (at least traditionally). 

It is possible that there is overflow, or a clogged gutter, dumping water on the neighbors roof. 

Install landscaping that requires less water.Gadgets that help prevent water damage if water goes where it shouldn't be going: water alarms (place under kitchen sink, next to hot water heater, next to washing machine) and a "dwip" pan for under the dishwasher (if the dishwasher starts to leak, it forces the water away from the back of the cabinet and out onto the kitchen floor where it can be seen.)This is how we do it:Utilities that are variable (cost tied to use) - electricity, natural gas, and water/sewer - tenant paysUtilities that are fixed (flat fee) - garbage/recycling, yard debris - landlord pays (but we factor the cost into the rent.)In our city, both water/sewer and garbage/recycling will become a lien on the property if it is not paid.  

All my leases have m-to-m at an automatic $300 increase inorder to prevent this issue!

Preventative maintenance costs more in the short run but pays off long term.

Two of areas that come to mind as buyer in a lease option or a "contract for deed" for deed transaction are :1) Title: Since you won't receive title until your last payment, the current owner is at risk of  future liens or judgments that could attach to the property before title is transferred.2) Enforcement of performance:  If the seller get's cold feet or something should happen to him & his heirs or someone else take's control of the property, can you be sure that what was promised will be carried out.This is not a comment on the trustworthiness of the seller, it's about educating yourself & having the wisdom & foresight to preventing expensive problems in the future.