It would appear the harsh and long summers there have an adverse effect on the cooling units, which should seem obvious, but was something we didnt budget sufficiently for when we started out.

@Devante BollIf you have a separate account for your rental business (and you should), your bank statements should be sufficient evidence.

I can almost assure you that the vast majority of the buyers in our market and here on BP are not putting down 20-25% on an owner-occupied multi-family fo 4 or fewer units. 

This assumes a lender appraisal comes back with sufficient equity, etc. 

Then, when you decide to move, it will be a self-sufficient investment property.Run the calculator again with all of the numbers updated.

I would strongly suggest to them that in the  future they have sufficient rent money saved in reserves to pay on time.I would waive the fee but would not tolerate a repeat of their actions. 

Property sounds sufficiently difficult to appraise that the price of a meaningful answer is...

That being said, the vast majority of people believe or feel they "have to" start with wholesaling or flipping. 

By no means am I attempting to bash hard money because they definitely fill a niche but  If you have sufficient income, assets, and credit to qualify for conventional loans then that is probably a much more cost efficient route to go. 

Normal Freddie Mac property standards.No FHA "self-sufficiency test" that kills transactions at the last minute.Underwritten and funded in-house, no send-off to an outside Agency for approval.