The lender certainly loses out by lending with less collateral than they had intended. 

Over time I think you'll see more specialization in the space because investors will lose confidence in the platform's ability to underwrite deals outside of their area of expertise.  

VA Loan- they have a rule that they don't count GI Bill education pymnts which has us losing a chunk of our income and puts us under the 35% debt to income ratio.

The world kept spinning, I didn't lose my shirt, and I drove on home with the strange, anti-climactic feeling of 'did that really just happen?'

Unless HUD listings need enough rehab that they can get bank financing, you're almost always going to lose out to owner occupants during the 15 day period.

There is no faster way to lose future deals with an investor or lose an initial deal, than with inaccurate rehab cost.  

No additional equity, possibly losing money out the gate if there are surprises, and you will further tie up more of your cash - unless you are using a HML and planning to refinance out. 

That may or may not put emphasis on the property cash flow or personal guarantee, etc.  

So if one were to post closer to actual numbers, then their properties would seem an inferior product compared to their competitors and they'd likely lose market share.  

@Jeremy Shinall Yes you can definitely lose your shirt if you do not know what you are doing.