@Marty True Thanks for taking the time to explain what your position.  

@David Zheng  Can you explain what you did to get to cash flowing $12k per month in such a short time? 

He wanted to wait until the new tenant moves in and have her call the city to put the water back on...I feel this is so wrong, but I don't know how to explain this to my friend...Does anyone know of a law that says this is wrong?

We got the packages together and the lender brought it to their underwriters for a preliminary approval and were told that I needed to write up a letter explaining why I was moving from a single family home to a multi-family.  

I explained that I have a lot of respect for officers, but only up until the point that they disrespect me.

My recommendation would be to build relationships with lenders and explain what you're goals are, how many properties you expect to get financed.

Here are a couple of questions you can ask.1) Do they own real estate in the market and are they actively buying2) Do they purchase or own real estate in the areas they are currently selling (in other words, would they own what they are selling)3) Do you pull permits on your jobs4) Is their PM company licensed 5) Explain how your property mgmt company is transparent with maintenance and billing your property management company (Probably most important as a non-transparent PM can bleed you)6) How does your Property Management company excel in communicating to the investor (also important as you are out of state)

I've read a lot of blogs about the subject however, it still doesn't explain the details to the process.

Maybe this example will explain the idea better: Comparing owning 4 SFH and 1 4-family, in the first situation you have 4 roofs that can take damage in a bad storm, leaving you on the hook for suddenly dealing with substantial cap-ex expenses across 4 properties.

This Link does a pretty good job of explaining the topic.