Issue is, in these "bad" deals the government comes after the lease option seller for predatory lending practices and the eviction / foreclosure process is a nightmare.

Some rehab lenders have favorable refinancing programs to convert the rehab loan to permanent 30 year financing.

Some programs will do the full LTV that a long term rental would have and some lenders will reduce the LTV by 5%.

The California government will deal with the damage the same way all governments do , they will find a way to raise taxes or get the Feds to pay for it ( that will be difficult with the new administration ) Here is what I find ironic , California has C.A.R.B. to pass regulations on vehicle emissions .

A lot of universities have students that need mid term housing due to graduation dates, mini semester programs, etc. and I've found if you approach them and offer them a solution to this problem, they are willing to work with you and help send business your way. 

Looks like there is one program that has not closed yet in Ohio, maybe not the right county, but I would call anyway, they typically know who else could help.https://nlihc.org/rental-assistance?

Additionally, Fannie Mae and Freddie Mac will sometimes temporarily suspend the income cap on their HomeReady and HomePossible programs, which allow purchases with 3% down.

The only advatange of Private/Hard Money Funding is less paper to non paper work or a Non Tradition Lending programs available like DSCR (debt service coverage ratio) or Bank Statement.

Its extremely important to know your numbers upfront from approved sale price, Maximum or Minimum downpayments, programs, costs, and seller credits.

Maybe look into a down payment assistance program for a first time homebuyer and house hack.