You do not need to decline any applicant simply find a better qualified applicant and let all others know the unit is no longer available. 

If the lender is concerned about "thin" credit or "short" credit, other non-traditional trade lines may be used to qualify you.

We have a good paralegal that we use if we end up with a tenant that we cannot easily get out ourself using the Landlord and Tenant Board N4 and L1 Forms and a hearing. 

I definitely do not qualify but they put my estimated home value between 130K-149K. 

Within about +/- 10% how much do you think I would qualify for if I were to purchase a second home that I want to use as a rental??"

I HAVE BEEN TRYING TO DO ALL THE TAX FORMS MYSELF, AFTER LOSING A BOARD MEMBER THAT WAS TAKING CARE OF THIS.CAN ANY ONE SUGGEST SOMEONE QUALIFIED TO BRING THIS TO A SOLUTION

Holding them- not flipping -gives you the opportunity to use a 401(k) or other qualified plan as well, and get the benefits of tax free  or tax deferred  income. 

.- make sure you qualify for the refi cash out ahead of time.....the first rehab flip aint over though until its over..congrats on learning.....there might be more unforseen factors coming to sway your decision.

My lender is saying that they go off of the lower of the two scores, and it must be at least 720 to qualify for only 15% down. 

If you choose not to accept Section 8 be consistent and across the board with it because even if it's not a protected class you still have a duty as a landlord to be ethical and consistent with the enforcing of your screening criteria.