Conventional wisdom states that building a solid local network is key to any operations.

Happy Thanksgiving Rick, Go the conventional route.

They refused to accept my terms and said I would need to put down 30% versus the traditional 80/20 with conventional terms.

Note that FHA can be a great option at 3.5% down but don't rule out the 5% down conventional option either. 

Friendly reminder you can do a Conventional loan 95% LTV to purchase a home for them.

That's the predicament of using conventional financing.

Due to your payment history it’s going to be tough to refi out into something more conventional or a DSCR.Hard money is your best bet but that’ll cost you.If your selling, drop the price and you’ll bring in more demand.

I was shown about a handful of their holdings in the Houston, Memphis, and Little Rock markets, but the cash flow and CoC returns were less than $100 per month and 2-4% after factoring in additional expenses like 7% vacancy and 10% maintenance per month to go along with 20% down and conventional mortgage.

What are you considering a "conventional" loan vs. a DSCR loan?  

If its a conventional conforming loan then I believe they should be reporting your payments.