I may switch to a 5% conventional loan to avoid the risk of failing the self-sufficiency test.

A house can pass inspection but once someone is living there it's being put under daily stress (faucets turned on/off, heat/AC on an off, etc) so be prepared for repair costs 

I don't see how the seller's agent has to prepare the offer.

@Susan Thelen it’s likely easiest you do this in excel so you can easily modify variables and test the NPV sensitivity.

I communicated that I was preparing to take a loss on the flip and she agreed to list for a 1% commission.

We want to be prepared if they try to stay past the lease end date. 

So be prepared for a lot of rejection. 

I had been prepared to just get conventional financing. but if I need to  go another route, does anyone have any suggestions?

Really appreciate the words of wisdom and you sharing the challenges others have faced so I can learn from their experiences.I'm probably putting the cart before the horse here given I still have a lot of educating myself to do, especially across market analyses to lock in my strategy, until I feel fully prepared to move forward with anything.

Unfortunately, now I'm realizing house hacking might not even be a thing with the new test they are doing in 2023.