I've had over a dozen applications over the last month, and only one applicant we really liked (and they haven't gotten back with me). 

However, until then, i don't expect Nova Scotian municipalities will enforce legislation limiting our re-positioning of rental housing - as long as we don't disturb the neighbours and pay the CRA :)Looking forward to any feedback Paul

.$450K purchase price, 25% down...30 year fixed rate mortgage at 5% on $337,500 is $1,812 per month...So if you have zero vacancy you'll break-even on the mortgage...And then burn money on maintenance, cap-ex (likely very limited), any vacancy, property taxes, insurance, etc.Consequently, you really, really, REALLY need that home price to go up. 

What specific deductions would be applicable.

You have already provided enough information that would have me rejecting their application.

. $300k limits pre-umbrella required on cars and houses. 

This includes both inside the city limits of Mt.

Most big banks will follow FHA guidelines, but some of the local banks / credit unions have more aggressive products and can lend with higher LTV or DTI limits once you have some experience.

Is that a violation of fair housing laws pertaining to discrimination against income source (I guess in reverse for non-section 8 applicants)?

 The purchase agreement should have stipulated that rents would be prorated based on the day of closing and that the security deposits would be transferred to you, along with keys, copies of any written lease agreements, tenant payment records, the original tenant application, etc.