While very lucrative - if you don't have enough reserves, it can really break the bank. 

However, if they fail to meet any of the agreed-upon payments, I request that they vacate the property.Great suggestion.

The appraiser gave the house a low score so the bank said it is a risky investment for them and gave me a 70% loan.

How would the bank even know the gross pay amount?

I think the borrower is better off trying a local bank or broker in that area.

I have $25K cash for a down payment and can add $20K/year ($1,600/month) toward payments.No W2s, I've looked into building a small home right away and using a bank statements loan (have about 8800. monthly income) , but with 9%+ interest rates, it’s beyond my budget.Is there any sort of creative financing ideas possible or private lender possibilities?

Sometimes a good commerical Broker could come in and deal with the bank and or their captial markets.. 

I deleted it, and restarted it twice feeling ashamed that I had failed in my endeavors. 

Hard money lenders are much more like banks and come with many restrictions, requirements, due diligence, fees, etc.

Quality of everything is very heavily weighted, and penalized for failing at it.