That is not correct if a lender is involved as they will have to approve any changes and it could be subject to TRID guidelines

If you follow the basic guidelines that make something a solid-performing A-class rental in a military location and you build that, you'll have a lovely new home to live in that ALSO is a low-maintenance investment on the backend.  

I think that 1% rule is more of a guideline than a rule.

There's zero training included, but there are also far looser guidelines of what's allowed. 

Yes I agree COVAD-19 has changed some guidelines.

Their loan products and underwriting guidelines will be the same for the most part.

It sounds like you've already had this property tied up for a while - is this property one that will meet FHA guidelines?

Many hard money folks have stricter guidelines and lower LTVs. 

I would challenge them to tell you what statute from the state or what underwriting guidelines are forcing that requirement so you can know what they are basing that on.https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B5-Unique-Eligibility-Underwriting-Considerations/Chapter-B5-4-Property-Specific-Products/Section-B5-4-1-General-Reqs-of-Texas-Section-50-a-6-Loans/1736883621/B5-4-1-01-Texas-Section-50-a-6-Loans-12-19-2017.htm 

Is there any certain guidelines I have to follow and are you even allowed to do that?