What you will run into more though is that the bank/lender will tell you "no", because it is in their rules, not Fannie's.

So once( and if) small claims court rules in my favor, I will contact their employers and set up a pay garnishment and have the money deducted on the monthly basis.   

One thing I’m confused on is the calculation of the 2% rule.

This is also the notice period for terminating a written lease for anything other than non-payment of rent (unless written lease says otherwise).If you are going to play the game (landlord-tenant), you should know the rules.

It's not conventional financing and the rules are made up by the individual companies. 

-Duplex listed for $345K (two 3/1’s with yard .38 acre)-Now under contract for $325K (seller attempting to make $25K in deferred maintenance repairs)- My wife is broker- Currently rented for $2650 (7.1% CRate)- C+ to B- property in B to B+ location- We will manage- not much of a value add in near future, likey 6-8 years before any meaningful improvements- approx 170 MF units built 3 years ago and another 170 units starting now in very close prox. (1 Br is $1250).

So, most large investors are doing what's called value-add, where you improve the property to raise rents.

There are tons of things to consider from zoning and land use rules, utilities and nosy neighbors who may not want "those kind of people" in their area. 

Also, the number of rented units allowable can change with each iteration of the bylaws (especially in improving neighborhoods) and you may find yourself trapped not being able to rent.

Depending on your state, small claims would probably rule in your favor.