It's a measure of how risky it is to lend you more money, at the moment.

In terms of not hiring a PM until eviction is needed, that's a risky idea.

Risk is made up of many items including eviction rates, tenant quality (very much a function of vacancy rates), vacancy rates, etc.What this really means it that different markets have different strengths and weaknesses.  

If you are planning to sell in less than 5 years, it is my view that house hacking is too risky.

Keep in mind BRRR is highly risky for obvious reasons.. you may want to start with someone thats rent ready first to get your feet wet..

The risk is that if they don’t find a buyer, they simply default with very little money into the deal.

Thanks a lot for your input, totally agree with you, it might be too big project to handle especially for newbie, we might not proceed unless there is significant price drop worth to take the risk...I also have talked to couple investors one of them is experienced investor/ flippers, they all said they would pass it as too much work and non profit for them to do it at all.. 

I'm unsure why/how this is relevant as I'm a US citizen, with US business/banks/brokerage accounts, and all my finances are in the US, though I do spend a lot of time outside the US.I read this wasn't an issue and even asked ahead of time, but now at the very end they are saying they may deny it, even though I'm probably one of the least risky clients they could take on, and have proven so (with countless uploaded documents).The property is a single family house in IL for $160,000, with downpayment of 25%, better.com gave 2.75% loan for 30 years of $120,000.My income is $120-180k+ each year, with assets over $1.5M+.

Wells are an expense and Adirondack well drilling is a risky expense due to bedrock. 

It depends on how consistent your other income (W-2 or self-employed) is, what kind of tenants you have, the condition of the properties and how risky your feeling.