Also, don’t forget to request proof of recent rent payments.

It is easier to bullet proof a small duplex than a house.  

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

Do not even consider it if you don't have proof of rental payments for the past year via bank accounts.

Regarding the other types of loans, based on your explanation the conventional loan seems to (on average) have a lower down payment but takes into account the normal loan factors whereas the debt service loan doesn't but with a slightly higher down payment, proof of income generation through the property, and never being able to live in it.

That eviction sounds very expensive, but it's probably worth biting the bullet.

I wish they would require proof of ownership/authority, and proof that the property is properly registered and authorized to operate as a short-term rental.

Contract marked owner occupied, there is NO tenant in subject or proof tenant moves out, no rent back from seller... you cannot use rents to qualify, do not rent the property, there are ways this is checked and considered dishonorable.Your wife and children can move in and you can come and go as your service requires. 

I was always surprised at its popularity despite a bold baby proofing motif.

So. it’s not uncommon to request proof of rent depositsvia bank statements and corporate/LLC tax returns.