That does not mean that pay stubs and tax returns are the only way to prove ATR fir example bank statement loans for the self employed is a method to verify ATR. 

My client intends to pay off the principal, interest, fees... all at the close of escrow.

So, they will be paying that. e) How are you claiming deception when they have clearly they deceived you?

My original plan was to update and flip it , pay off the heloc and use the profits toward buying my first rental.

I live in southern Ontario in Canada, and here if a tenant doesnt pay the water bill it goes onto the landlords taxes.

We are choosing new build because A) our family 4 has a certain size demand B)  the price-quality ratio doesn't seem to make sense when considering a preexisting home C) with interest rates being at near 8% with preexisting homes, builders are offering 5.99% interest rates and the exact home we are looking at is about $75K discounted because it's a spec home and the builder doesn't want to pay taxes on it.So, live in it for 5-6 years hopefully rent it out with a fully finished basement for potentially $4,200 in 5-6 years.

This had 2 different interest rates, though so you'd want to look into what you would be paying on a monthly basis with that blended rate vs actually just paying the PMI. 

Remember you're also paying 10% interest, taxes, insurance on that time. 

I had looked it up a while back and a lady was paying property taxes on it in the local area.

.- Adjusted Purchase Price/ Max Bid: $210,840.80- I start with the 1% rule (thus why I start the analysis by looking at rent) and then adjust the price based on the potential pay-out from a cash-out refi and equity position on the property- more on this in a second. - Potential Investor payout (15%): $242,466 - Rehab total: $76,480.00- I just used $40/ sqft for an estimate.