What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Some bills for utilities were verified but others have no accompanying receipts / invoices and even double charged. 

Have you checked zoning to verify this type of facility is allowed?

The NC Secretary of State has what they call an eNotary, but "the process maintains the traditional safeguards of requiring the eNotary and the signer to be in the same physical location and for the identity of the signer to be verified by the eNotary." 

Quote from @Brynn Walden: Hi,I will be completing multiple 1031 exchanges over the next 24 mths ( starting in June of 2024 ) and I am primarily interested in passive real estate investments as I am easing into retirement.I have a 30 plus year history of active real estate investing and management.Does anyone have recommendations for sponsors/syndicators/financial advisors that are reputable and have verifiable track records?

However city is imposing a good amount ofimpact fees based on the bedroom count - which accounts to close to $40 k , which i cannot afford- Ibought the house for myself to reside and cannot afford to pay this.We verified with city prior to buying and theyconfirmed it is residential zoned , however never mentioned about any impactfees.It is residential zone - MLS shows it as 3 bedroom 2baths - it had a extra unit  in the back and also a inbuilt rolling bed on 1st floor for the main I am stuck here- they are asking to prove it was usedas a residential -ever - any guidance would be appreciated on this.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Verify their references, income, and rental history to be sure they will be dependable tenants.

Either direction you go, it would be important to verify their credibility through word of mouth and reviews.

We verify your information via the three major personal credit bureaus, as well as various utility providers.