Sometimes the tenant just doesn't know about them or their situation limits their ability to apply.

This advice definitely applies. 

If you sell a property, capital gains tax applies based on each partner’s ownership share, and a standard 1031 exchange won’t work if proceeds are split, as the exchange requires continuity of ownership in a like-kind investment.One strategy is a drop-and-swap, where the LLC distributes the property to partners as tenants-in-common (TIC) before the sale, allowing each to complete a separate 1031 exchange.

You should require the new person to apply, pass your screening, and sign the lease.

What you are asking is a super important question and it doesn't just apply to lenders.

Just to consider, doesn’t necessarily apply to them.     1.  

You can look into low-income neighborhoods usually the properties are of lower value, but I'm not quite sure if that applies everywhere but I know in Florida I see it here and there, and if you need help looking I don't mind helping.i would be wary about REO/HUD owned properties as a first time househack.

I would consult with your bank before making any moves if this applies. 

@Christopher HeidrichRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I would stay away from section 8, pull credit and background, and call referrals, and look at pay stubs for everyone who applies.