There are many reasons both buyer and seller would agree to a subject to the existing mortgage transaction.By doing so, a home sold and off their hands more quickly in a more affordable manner and we are able to give them top dollar and in some cases even more than the asking price.

Can this be a good enough reason to deny their application?  

Part of being an S corporation (or taxed as one) is that the Shareholders are required to take reasonable wages. 

I will sometimes not respond for one of several reasons:1.  

According to my research, these are the only areas that can cash flow pretty reasonably well based on a budget under 400k.

Is there ever any reason to put intended beneficiaries on the deed rather than in the will?

I guess you have to look at a worst case scenario, if things didn't work out with the restaurant for whatever reason could you still live off your wife's income at least for a while?

If there is no room to change the address, then you're kind of stuck.Addresses can be changed, and this is a valid reason for the request. 

Personally, if my profits were enough to do it, I would go no coin-op for the reasons you're saying.

Don't get caught up in the "if I go with this person I can make X but if we get traditional financing we can make X"  You already know the reason because you're experiencing it.