Just be open minded and reasonable.It's to WEED OUT potential borrowers who will waste the investor's time and effort to loan them money.   

Usually in short sales the borrower is behind and provides a letter explaining why they can't pay their bills and their dire need. 

Banks decline people that are self-employed, not because their tax returns are too complicated, but because they take massive deductions (legal, I know) which reduces their adjusted gross income.Incidentally, banks turn down W2 borrowers that take massive deductions for business related expenses which also reduces their adjusted gross income.I would suggest you look on BP to find an investor friendly local lender that you can sit down and have a coffee with. 

Second, the cost of materials is soaring, but hasn't yet stopped the demand for a new home on the buyer's side.I know for certain that some banks are flipping houses now, rather than sell off their REO properties for discount.  

I stopped doing bandits as the response rate declined drastically.  

Hi All,  We're starting a rehab on a property that we took back as an REO, and the borrower left in a disaster. 

Add 2% and you're borrowing at 6.75%.....no HML will touch that given my newbie status. 

So it stops you from buying and deal with the numbers don't work.

To sum up my opinion, it really just depends on the type of deal and borrower we are looking at.

The city can't stop you from buying and they can't force you to build.Assuming that answers the question of "can I" the next question is probably "should I".