Since I haven't had any other PM other than the one I am currently with I don't have much to compare to and can't really gauge the quality of the service.

I'd say the banker is pulling your leg a bit, as the secondary market is practically a limited risk with quality originations, there aren't any specific program changes dictated by Dodd Frank but there are other things going on that make things tighter for lenders in compliance, underwriting, reserves and management.As to Fannie and Freddie, 95% LTV won't go away but underwriting may be tougher.

I am afraid the mold is affecting the air quality of the house and affecting my kids.

If the conservative financials look good, there is upside potential rather than being too optimistic and never hitting the analysis numbers.This site has a lot of info about using 50% of rent as an expense factor, as a method or at least another gut check.

I have been using the wholesale strategy for about 5 months now but i cannot seem to find any deal i had two contracts but both fell through and now all I have to invest is about 50 bucks please tell me some free too low cost marketing methods to find motivated sellers thanks!

If you buy a house to rent out you will inevitably need a slush fund to pay for the unexpected hot water heater failure, etc.Once you get a few wholesale deals under your belt you will understand the market better, have met a number of other investors(check out your local REIA to meet them) you can learn from, and better understand alternative methods of investing to move forward.Keep asking questions and reading posts on BP and you'll have a wealthe of knowledge.

Would you suggest lower grade neighborhoods for higher cash flow, or better neighborhoods, higher quality tenants but less cash flow?

In Atlanta, I paid $4.50/sy for rolled vinyl flooring (mid-grade quality) and about $4.50/sy for installation.

For occupancy they can look at last 2 years tax returns from the 4506T form the borrower signed, they can pull nationally any properties owned by the borrower and spot check for tax billing vs property addresses and other methods.

Perhaps I could train my tenants about quality and design.