I make sure I screen each potential tenant thoroughly (background and credit checks) and require references.

You could house hack and use the other portion to AirBnb as then you meet the primary residence requirement in B.C.

OccupancyMost lenders require a minimum occupancy rate of 85%.

This requires an independent appraisal valuing the property at $400k and proper documentation from the seller confirming the $200k donation.Ensure the church is a qualified 501(c)(3) entity, and consult your tax professional to comply with IRS rules.

As for the "seasoning", some lenders will require the property to be "stabilized" (perhaps 80%-90%+ occupied, depending on the lender) for 3 months, 6 months, etc. before they'll do a cash out refi.

As Jonathan mentioned it can be done, but they may require an appraisal of the property. 

There were several mistakes made on my tax returns that I pointed out, which required going back and forth with their tax preparers, and asking repeatedly to cut to the chase and have a phone call.

Make sure any lease agreement you use complies with Arizona's landlord-tenant laws, including required disclosures (like bed bug information, for example).If you're unsure, consulting with a local real estate attorney to review the agreement can provide peace of mind and ensure you're fully protected.

So when the bank requires insurance for the loan amount.. that will work generally.. 

Yes requires higher downpayment but can get down to 30%.