I've also purchased several foreclosures from banks where if you used their title co, they paid for it, but if you used your own, you paid for it.My guess on the OP though would be its not really a FSBO, its a Wholesaler and the contracts are already at title co. 

OP attach a picture or two. 

If the $700 / month rent is accurate, should be a good deal for you.The 50% rule ALWAYS applies to estimating expenses over a long time - it has nothing to do with having a loan.Steve Babiak Where I am, if you have a house that isn't habitable with such a low ARV values, not even an hml would loan the the OP 70% of ARV.

For retired people paid of mortgages absolutely makes sense.In the case of the OP if the 1300 rent generates 650 in actual cash flow after 50% expenses then his cap rate is about 4.5% after the mortgage is paid off.

I don't think they can require OP to refinance it, but they also don't have to give OP his next mortgage if they don't want.

The OP needs to be careful if they have a loan as there is the possibility of triggering the due on sale clause if moved to an LLC.

And lastly, it sounds like this is the OP’s first investment property. 1 month later, and if you have surplus time and money to look for ways to improve your tenants’ life, you need to focus more on acquiring properties and funding, less on how to make your tenants' lives better.

The complaints were size (it is a small unit but that is indicated in the listing (it is even called Jamaica beach cottage)), bunk beds (shown in the pictures but not ideal for the guest’s adult children), no dishwasher (like the OP, there is no room for a dishwasher and it is not listed as having one).  

(Lender take on the topic)@Matthew Kwan@Carlos ValenciaIn the fact pattern OP expressly identified the issue as not lender-related but rather a tentative closing agent.

I just read somewhere that MD doesn't charge transfer tax for Co-op...that's quite a bit of saving.