.- get into real estate with a lower rate and lesser percentage down payment.

The website 51west.properties also scores low on scam advisor ("owner is using a service to hide their identity, high number of suspicious websites on the server, registrar has a high % of spammers and fraud sites, website is (very) young, website appears to be hosted by a company with a bad reputation", all according to https://www.scamadviser.com/check-website/51west.properties...)Trust your instincts. 

To do well, build a strong money base, keep a good credit score, and look at other loan types besides FHA.

For the 2nd applicant, her credit score shows 770.

Quote from @John Underwood: Well how many reviews were there and were they all 5 star. 10 Star now on Vrbo.They have 42 reviews and the score isn't bad at all for this specific potential client.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The bank will want you to be working for a certain amount of time and that have certain credit score plus have your financial ratios match what they want. 

When I look for my next property, I work on cleaning up credit, so my scores are as good as I can get them.  

Depending on the principal, a lesser or greater degree of professional advice is necessary, but most SFR transactions are similar in their mechanics.

She has a higher FICO score but full of eviction records which I was aware after she moved in and was late for the first time by using another public data source.