Obviously this does not meet the 2% rule but is actually 1.5.I assumed 20% down on a $100,000 house with a 30 year  loan at 4.5%. 

You obviously found value in what they were offering "Using this technique I have been able to get thousands of dollars worth of training for FREE!

I'm pulling out of this deal because I've obviously made a serious miscalculation & had no room to discount it any further without losing money.

But in most markets as far as I am aware, particularly Memphis where we are it doesn't happen anymore.Bottom line is KNOW WHAT YOUA RE DOING, which you obviously do :-)

Obviously with other factors needed for certain areas (ex: fires in California)

Obviously, contacting them is out of the question, but has anyone delt with these folks before?

If you are cash and don't mind having the money tied up then that obviously isn't as important. 

This is a wholesale deal and I was obviously looking for a cash buyer.

It seems so obvious that any tenant who lives above them will be a problem for them, so they ought to go find a SFH to rent, but I think the "reasonable train" has left the station.Thanks so much, and sorry for the long post!

First I called the real landlord and got the information I needed, then I decided to call the landlord name and number on the application.They gave the applicant a great reference, great pay, keep the house up, etc etc,,I ask how long they had owned the house, she said "3 years",,I told her there was an issue because Central Appraisal district didn't show her as the owner,,she said "I just don't understand that, probable a paperwork problem",,I then informed her of the real owners name, and that I had just talked to him,,,she said "did you say 623 xyz street, I own 624 xyz street),,,I said first there was no such address, then I was curious how she gave me a great reference on someone that obviously wasn't her tenant,,,,about that time the line went dead.When the tenant called me later I told her what had happened (I knew she already knew), and told her that lying on the application was an automatic decline.