I'd prefer to keep the money to pay the taxes and insurance myself.I would still call the mortgage broker and calmly explain the dilemma due to the broker's error.

I think alot of the answer depends on your intent when purchasing the original property and numerous other factors as outlined in this article;Forbes Article on Cap Gains vs IncomeI would recommend getting a trusted tax advisor involved sooner rather than later. 

Please post the property address as this link leads to a session timeout error.

Amit, I have done numerous frame work.

You have to be careful about this throughout the City of Indianapolis, but I have seen it specifically in this neighborhood on numerous occasions.

What's the real margin of error?

Here's another suggestion that I have forgot to mention numerous times previously. 

They will usually list numerous places and you should be able to get a good sense of the market.

If you believe that it was denied in error, please contact the owner/property manager.

He's been warned by the landlady and the police, numerous times, to leave me be, and has yet to do so.