The fact you have a rental locally as well doesnt help and or distorts the case as a second home or primary so I can see why this would be declined.At the end of the day this file was probably structured poorly or perhaps the loan officer did not understand your objectives and put it together, turned it in, and prayed for the best.

We want to be objective and fair 

It's very easy to get distracted by "shiny objects" and never pull the trigger on anything.I'd suggest buying a home in an "okay" area for around $20k and rehabbing it to make rent ready.  

Some landlords try to keep some of it, or even all, of the deposit the key if you go to court is what you agreed to, or what seems to be to an objective reasonable person.

@Dylan TettemerSubscribe to @Bill S. and read all of his posts, by 2019 you'll be light years ahead of the rest:)@Ian Walsh that is generally a good principle, but not the rule of thumb. 

You’ve put in countless hours building a firm knowledge of the foundational principles of real estate, and you’re up on the market trends.

Most of the main principles will work in Germany as well as here, perhaps with the exception of wholesaleing.

If they have objections, be prepared to respond to those.

Jenny, Ultimately you have to decide based on your goals and objectives on what feels right for you.

Truly I loved teaching Principles!