So I'll get off my small horse and just say that "lots of people do it and it often works because they usually don't care"  isn't much of a defense if the lender does care and also that you now have a situation where the LENDER HAS CONTACTED YOUR ATTORNEY TO SAY DON'T DO THIS. 

Be aware it's a race to the bottom game because anytime there is a job request posted, especially the easy jobs (paint, interior trim, etc.), you will see a bunch of hungry wolves reply.

My understanding though is that there are states are referred to as "Race to the courthouse" states.

There is no race to the bottom.  

you seem to be putting the cart before the horse.

@Shane Malloy Baltimore continues to be the dark horse, and there are very interesting submarkets that are very strong in MD. 

Lender needs to verify that there is no 'rent to own' arrangement or anything else that could put some other claim to the property ahead of said mortgage (such as fair housing violation, etc, like if the current landlord ever told the tenant "no one of XYZ race can stay past 9 pm"). 

If you (and I have met very few people that didn't have that) your off to the races.  

I have to be comfortable renting to the people that live in the area (I don't care about race, family type, sexuality, I'm talking about the war zone personalities/mentalities).Anything that meets to above criteria I want to keep as a rental.

My mind was racing last night and I was wondering if this sounds like it would be possible.