You're wise to highlight "reliable" income as a goal.

One thing I would highlight is that, while there are definitely several more affordable cash-flow markets out there (primarily in the South and MidWest) the thing you should focus on most is the people.

We put in an offer on house after our agent showed us disclosures and didn't highlight any areas of concern.

I hope it works out, but I'm surprised no one highlighted your bankruptcy as a red flag to getting a loan...unless your step dad is helping you out on your first couple, and you're able to save enough to buy more houses in cash. 

(I would take 30yr amm :) ) and allow us to rent it out...This is where problems start, after discussing our prospects, plans, future with several banks here are some highlights:-We ran into bankers who want a tenant in place before we buy the house (the good deals come when the owner moves out imo!!)

Or maybe the house isn't in the best condition and the seller doesn't want to go through the hassle of fixing/prettying it up, finding a seller's agent, waiting to find a buyer, waiting for the mortgage, etc (mentioned earlier in this thread).Much of marketing involves contacting potential sellers and highlighting the benefits you can provide, and hoping you contact them at a point in which they are motivated to get rid of said property.

Make sure they all note condition of areas prior to cleaning on their invoice to highlight that this was above wear and tear and stains and sticky etc was present.

HIGHLIGHT it and say you see no reason for them not to be out as per their original plans,, that the new tenant has said they need access and can not be delayed.. and if they want to risk the legal issues of this portion of the lease you fully intend to exercise that option, and here is the Notice of Lease extension per B on their lease agreement.. 

Selling it will bring them money, instead of having it be a drain, paying property taxes: highlight the negatives of holding it vs the positives of finally selling.Any other suggestions for tackling this?

I tend to be more of a highlight reel type guy and then want to come up with a plan and move forward.