Like others mentioned and you, yourself mentioned, you have options that work. 

Otherwise, I would have to say just say no and move on and wait for another applicant to come along. 

The fha 100 mile rule will be triggered whenever you try to vacate your current primary and also trying to use the rental income to qualify.However, this 100 mile rule can be exempted for the following rulesRelocationIncrease in family sizeVacating a joint owned propertyNon-occupying co-borrowerIf you are not trying to use FHA on your 2nd house hack, you can use conventional and the rules that I mentioned above will not be a concern.

If you want to use the appraised value, you'll have to wait 6 months (generally) to get cash out. 

as mentioned, get to your local real estate meeting.

@Andrew SmithYeah this one is a monster, I cannot wait to see all the proof of claims… then the lambasting they will get for the “you invested x $ in that company…..

I would not have waited and you're lucky to be still getting rent.

As I mentioned in an earlier reply, if the tenant owes money for damages or rent, they are liable.  

As I mentioned in my original post; I am a mortgage broker and I am very careful to present a lender to my potential borrowers as I don't want them to get scammed.

I'll search BP for the methodology mentioned by Mr.