I'm working with a buyer for one of my properties who just got declined for a mortgage after a 10 week application process.I'm trying to find another lender who will go down to a 600 credit score for an FHA loan.The only one I know right now is Wells Fargo.Does anyone know of any others?

I don't know but I am always more comfortable buying after a large price decline rather than buying after a large price increase.

This should give you good cashflow, protect against going underwater if house prices decline further, spread vacancies (one unit empty is still two paying rent, instead of just one unit), AND you get some tax shelter from the income without needing to donate to a charity.. :)But the biggest advantage is that you now have three units to cashflow to save for the next unit, you do not need to save so much because you are buing at 40k instead of 50k, and your equity is growing faster.

It's all very easy to say that good management is the key but if an area has declining demographics it hits values and rents often so you have no exit strategy. 

We are declining the offer due to the verbiage in the contract that allows the property to be "flipped".

Your property will be declining in value.  

Whereas locally it is possible that same investor would have A) seen the property start to decline earlier B) be closer and more willing to do that big effort to turn the property back around or not let it go down in the first placeWhen you long distance invest you do have to be willing to pay 1200 bucks to get on a plane the next morning even with all the technology tools available for instant communication and show your face to let everyone know you are serious.  

If you are not comfortable with the pets, decline to approve them. 

Well, I declined the approximate $400 repair thinking it might be better to buy a new washer.  

The easy answer here is just to create more/higher barriers wherein the applicant will already be declined before you get to that point.