That way you are lowering your payments which helps your debt to income ration with your bank when they are looking at your stats to make you a loan. 

Your debt service coverage ratio must be 1.25 or better.  

If you decide to keep the property you can refinance into a conventional loan and hopefully you have enough equity to eliminate the PMI/MIP.

But on the flip side, he's eliminating 99% of the tire kickers.Have a sit down with your realtor and express your feelings and concerns. 

We both hold full time steady jobs outside of real estate which helps with the debt to income.

I wouldn't say they're "scared", but they will look at your debt to income ratio.

All checks worked out very well (good credit score, not much in revolving debt, etc), but I did take a risk in doing it.

It is the investor who reduces the cash flow on a property by leveraging debt against the property.

Again, that part might not be important to you, but those details matter to me.That said, having everything outlined clearly for the applicants is a great step to eliminate any confusion, so I like what you've done with that. 

Hes also into real estate and had him look over my portfolio and numbers and debt stuff.