The underwriter is stating that even though there is one mortgage attached to 5 parcels or 8 parcels, it is still looked at as all properties being financed and it exceeds the 10 property financing rule. 

I recently came upon a single family house that would have required a ~$ 25k down payment, with no rehab potential and according to the 50% rule would have brought around $ 150 cash flow.

I would look into the rules and regulations for the MLS you are considering joining and then weigh your options.

Fees should be clearly stated, easy to understand, and justifiable.

We can then determine whether that return justifies the risks associated with rental properties.

It's going to take close to a decade for them to waste 15,000 assuming your managing it with temp settings and no open windows in the Winter, etc.I'm guessing since you are anticipating these upgrades that you are paying a price that justifies them. 

As far as her concerns with not being rented to by the new buyer, if she has a lease with you that has 7 months remaining on it then the new buyer has to honor that lease (though he/she can evict her if she is not following the lease rules).

Use, pay back, use again.However, when it comes to the refinancing step of that property you just purchased there are some pretty important rules when buying with cash or a HELOC/LOC. 

You're not even hitting the 1% rule.

Once you get a ruling you file to small claims court and if allowed garnish wages.Do you have a deposit from them to put toward rent.