Considering that  I'm looking at a price range of roughly $60-130K on houses might these reserves coupled with a solid reference letter from my employer and my excellent credit score have a fighting chance of overcoming the low income numbers from recent past? 

They are fighting tooth-and-nail to get their bids accepted, and there is not enough inventory coming online.

This is course how I make a living every day, as a GC and hands on carpenter.Here are the basics of the deal:sale price $95krehab cost ~ $60kARV ~ $210kAs I mentioned, conventional is an uphill battle that I am not looking to fight currently. 

Let them fight all over. 

@Jordan Puffer  I have no idea about Michigan, but in California we have very few deals that everyone fights for on a daily basis.  

You may want to talk to Brian Burke he HAS run a company through a severe downturn and lived to fight another day.. most sponsor right now are newer and of course our market right now is saving most as rising tides float all boats..

Get good grades, fight for grants and scholarships, and enjoy it - It should be one of the best periods of your life.

You would then have to fight the lien from being placed on your property and while it would take some work you would more than likely be able to fight it successfully. 

How do I fight their claim if they say that the damage is beyond normal wear and tear?

They know if someone lives there and times get tough they tend to fight to make it work.