Please tell me you have not accepted partial rent...What is occurring is a set up where he runs the show, not you.

There are all kinds of scientific (i.e. physics) reasons why this occurs. 

The owner occupancy requirements can be waived when things occur that present a hardship to an owner by staying in the property, things happen that are unforeseen such as a divorce, separation, loss of job, job transfer, death of a family member or where an owner may be required to care for family, birth of a child requiring additional room, some previously unknown issue, say radon gas at a low level that causes some health concern, a child you is found to need a dust free environment can cause an owner some health, financial or other hardship, that, if that matter were known prior to borrowing or buying, the owner most likely would not have carried out the purchase.

If the homes are actually cash flowing (not Rent-PITI= cashflow but actual cash flow) then it will show a profit so the debt is serviced and won't be harming your DTI ratios.Hope that helps!

So here is where the issues occurred.

This entire situation occurred about a month ago, and I'm a few weeks away from having them refinanced just in case they call them "due".

If you are marketing your deals publicly and many agents and brokers see what you're doing and you harm then in any way, you can expect a complaint to be filed and attention brought to you situation.Get a license, it's annoying but 3 weeks of time and a couple grand will save you tons of headaches and unnecessary stress.  

In regards to your comment about number of contacts with a seller, yes evidence supports that most sales occur after several contacts, so yes it would be an ongoing expense. 

The one you called probably just pushed you to the curb b/c you ask a newbie question (no harm intended) or dont know what a wholesale deal is so just find another one and start over once you have a deal. 

Let's say a 20 day late situation occurs at $10 a day on top of a $500 monthly rent.