When I tried to get it when my side of the family found out and tried tp take over reverse mortgage payments to bank because she had died it was to late so they sold the house to Hud and then other reverse mortgage companies but a relative still lives there so they can't kick them out.

I just keep hearing over and over again to just take action and course correct from there. 

After doing some research I realized that the first lien lender has so much control over the purchase price.

I would suggest taking the route of option 2 or 3, so not only are you saving over 10k in rent per year but the residents help in paying down the debt.

@Clark Harbaugh, Given the favorable tax rulings over the last few years (in particular revolving around trusts and their equaling a beneficial interest in the underlining propery) the IRS has actually been much more lenient (or at least silent) on these issues. 

Feel free to DM me and I can intro you over. 

CO Tenant Screening Laws have changed a lot over the last couple years.

I am now working as an engineer in the Twin Cities, but have plans of moving to Austin, TX with my wife to house-hack and work in the more plentiful tech market over there. 

Is one better over the other or do you just get the data from the source directly (gov pages)?

We are first time investors in such an entity and the property that is leased is a new construction that is scheduled to be handed over to us by July or August of this year.