I looked around and found lenders that will do a day out of foreclosure up to 50%LTV down to a 500 credit score but the loan amount minimum must be 300k.

The Bayport Dr deal intrigued us due to its market-ready condition, favorable purchase price, and high potential for profit with minimal effort.

Maybe some credit challenges.

They can choose to leave and you can both sign an agreement to terminate the tenancy, or, you are going to file for eviction and it will probably wreck their credit. 

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

Either would be a great option; I'd probably choose Roseville because it's more established, but the City of Elk Grove deserves a lot of credit for its impactful growth programs, so it wouldn't be a bad option. 

Any prospective resident with bad credit or a prior eviction is going to have an impossible time finding a place to live.  

Credit for childcare expenses.The credit is allowed for kids 12 and under.

If it was a single bank with a line of credit that would need to be made public.Now, what I have seen (not saying this is being done here), but with other funds is a fund create a feeder fund /LLC that would issue promissory notes to invest in the fund.

I truly appreciate it.I completely understand that the economics of owning a multifamily property (like a duplex or triplex) can be much more favorable than a single-family home.