After touring a large portion of the metro area with some local brokers and property managers we were able to narrow our geographic parameters a bit. 

When I do my analysis I include that in the 50% rule I don't see why you wouldn't but there may be another explanation or side of things.

If I chose someone more qualified, "We have accepted another applicant for this property".There really isn't any need to discuss further - all you are doing is inviting an argument or long-winded explanation.

Excerpt from the http://honish.com/monster/ website: The quick explanation of the Monster marketing system is this; you identify 18 properties that you would like to "target", they can be any property with an identifiable public data source (expired, NOD, tax lien, FSBO, etc.).

They then said that this rule relates to a specific geographical area so short to say if not all your properties are in that MSA you could have unlimited financed properties and still obtain FHA financing if you can structure and document the file that specific bank's comfort level.Some banks have different comfort levels than others so they'll add additional guideline requirements on top of what is "necessary," these are called "overlays."

What you need to be aware of is trends in your own geographic area.Then, focus on buying at deep discounts.

Thank you @Bill G. this was a great explanation ! 

Years ago I had a guy call for a refinance on his house he bought it or 500k and put 200k into his back yard and interior so when I asked how much it was worth he said $700k, I explaned that's not how it works the appraisal come in at 560k...Hard money some let you go off "ARV" after repair value but the rates reflect the leniency.

That needs to be looked into but if there is a reasonable explanation, their income is good and they have a good rental history I would rent to them.

The vast majority of the clients I work with chose our firm over their previous agent simply because they had never gotten a proper explanation of their coverage and policy.