Was told we "passed" the lender's test:  730 Credit scores,  plenty of $ for DP and reserves, years fo experience as RE Broker and PM, plus 2 rental properties and hx of BRRR.  2 weeks later, " the lender feels you do not have enough recent flip experience" and terms are up t 20% DP plus 4, not 2, points. 

I would say Annual operating costs have increased due to such things as property taxes and insurance.It much easier to do a 3% to 5% increase every year, than wait multiple years and then try and catch up.

Accept their notice and start marketing the unit and prepare for quick repairs and fast turnover.....let them go.You didn't screen them or accept them....no deposit (red flag)....below market rent (probably no increases in the 3 years)....and they are giving you their first test to see if you flinch....don't flinch.Yes its a business to make $$, but you also cant run a business out of fear....... the short term "pain" of vacancy can result in a long term benefit .

Makes more sense to me, give yourself multiple exit strategies and greater access to deals regardless of market conditions.

Now I know at first blush the town will say your zoned R-2 so you can't however when I see these other buildings with multiple units I ask myself well why them and not me?

@Don NelsonYes, many banks will cap you at 4 properties so it's a good idea to pull the HELOC on one of the first few if you plan on using it multiple times to acquire new property. 

Sorry - meant to say the bank came back to our 608k offer saying they had multiple offers now asking for everyone to put a "best offer" forward on this 

When there are multiple activities involved and one or more have negative QBI (QUalified Business Income), but the total is positive, the QBI for the positive QBI activities is proportionally reduced by the negative QBI before computing the 199A deduction and the ones that were negative will have no 199A deduction and no carryover

Someone with a W-2 job and a rental property or two will be charged a lot differently than someone with multiple K-1s, brokerage accounts, etc. 

Put an offer on this property of 608k which the bank owned property is saying they have multiple offers now want closer to asking price ($699k) Property is in opportunity zone and needs a good amount of work - have gone over this with my contractor.