I've worked with tenants in a similar fashion and ended up feeling ok about it but it was short term, over the course of a few months and they paid me something the entire time. 

I’m hoping to find more success in Phoenix, but as you stated, the old fashioned way may be my best bet.

Think there is some substantial validity in this, but do you think it could potentially be utilized in a different fashion?

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Of course the tenant doesn't want to pay, she's got a free ride.

Vs her current super-chill life, get's special discounts all over the place for being "too poor" and all the while can work cash jobs when wants extra, keeps her bank account low, plays the game to get here "free ride". 

If the borrower themselves need weeks / months to get plans and permits for construction, and does not provide all docs in a timely fashion, we can only go as fast as the borrower provides what we need. 2.

Interest rates atm seem quite high so will ride this out a bit longer (and ratios will continue to improve over time.) 

It’s cash flowing about $50/month after everything (PITI, flood insurance, home warranty, excess liability & termite protection) - if I got ride of termite it would cash flow $125.

Buckle up and enjoy the ride!