Sounds to me like not a lot of strict book keeping is going on in their office... so do I let a deal die because they are poor at office management?

If your score is, let's say, 775 in Credit Karma, you can expect your score in the report run by a lender to be 25-35 points lower (or more strict), like 740. 

Going into the purchase, I ran the numbers and bought it as if I was using it strictly as an investment property so I knew once I moved out, it would cash flow. 

The upstairs tenants will be there until February, but the downstairs I plan on moving in and making it all brand new (I work with a flipper so it will all be done in house) my question is should I go strictly fha or fha with 203k to pay for the Reno?

Well, strictly from a practical perspective, paying hard money rates is likely to be cheaper than the alternatives. 

This is gang busters and it is infinitely less strict than using a SDIRA. 

Even if it doesn't work for this specific deal, it's great to connect with these types of buyers, as it offers wholesalers a chance to not strictly focus on "equity" deals, opens you up to an entirely different market. 

Are you funding your buy and rehab with strictly cash or you're getting a HELOC or personal loan to complete the rehab?

In the market to purchase, strictly to establish and grow a rental portfolio.

Tried the same - Oakland is super strict - I have decided to add an extra bath and extra room to each unit of the duplex.