But when that first claim comes through, and the underwriters look at it, everything is denied.

And your insurance company will cancel your insurance when they inspect, and/or deny a claim and cancel. 

I didnt post on original message but house was appraised at 71k (conventional financing) I got denied by Wells since I own 10 properties and have to take this route.

That bid is considered your offer and is presented to the seller to accept/deny.

I attempted to take out a equity line of credit from the multifamily last year, but I was denied by the banks I applied to.

They will often get denied because they get some form of assistance.

Mortgage Insurance Companies aren't stupid.The servicers have to go by the pooling and servicing agreement for that loan.All options have to be documented that were tried before foreclosure and filing an insurance claim.If protocols were not followed the mortgage insurance can deny the claim.Mortgage Insurance wants to pay out as least as possible and deny as much as possible just like any other type of insurance company.The servicer can also face a lawsuit from the investor on the loan if the servicer cannot document that they tried less damaging workouts than a foreclosure.The servicers make more money extending the loan than foreclosing with fees.I think with the short sale foreclosure guidelines the government released less short sales are happening with certain types of loans.The government dumps all the liability on the seller and makes them jump through all of these hoops now.For example it says documents submitted can be seen by other arms of the government and that you are subject to criminal prosecution and heavy fines.Some sellers instead of doing that will just buy time and let it foreclose.

Once they park owners/managers saw I was making money they became resentful and started denying me deals and/or wouldn't accept my buyer.

Plus, you would be OK in denying the accommodation as edible MJ would not be  a lease violation and is a reasonable alternative. 

@Denis Iahnes That's great.