I am not advocating buying D properties, but the certainty of cash flows that comes with B and C properties (if you have a good game plan) is much higher and more controllable than the certainty of appreciation.

Remember you don't have to own a property to control it.

You could also do a subject to; often you may not need to put any money down to control the deal.There are a lot of great post here on BP and highly recommend you understand all of these options further.

We had spoke with the controller, and was given a go, to go pump water out of a basement.

We rent the house out are self allowing us control and keeping cost downs If you do decide to keep the house I personally am a strong advocate to lock in a low interest rate. 

I totally agree " effort is better spent re-filling "Do not mention to tenants  plans until property back in your control.( keep your options open )Just my two cents

Remember you don't have to own a property to control it.

To be an FHA direct lender you need to meet the following requirments: 1)Certified original audited financial statement with adjusted net worth of at least $250,000 that has been prepared within the last year.2)A senior corporate official showing at least 3 years of experience handling FHA affairs (loan origination and servicing background) 3)Multiple credit and background checks to verify legitimacy of the heads of the institution.4)$1 million warehouse line of credit or equivalent funding program to show liquidity and lending power.5)Business plans, quality control plans, E&O insurance policy, sanction letters, fidelity bonds and other formalities to provide security.As you peel the onion it makes more and more sense why some lenders offer certain services & products and why others simply don't qualify to do so.

Remember you don't have to own a property to control it.

(Copy and paste is formatting the text that the text box can't control at the moment) Maybe the owner is only trying to get it approved.