I am not your structural engineer so take what I say (and others most likely) with a grain of salt and best to get a contractor to come take a look at it.

We've found it has superior reporting features, integration features, and is overall more efficient to work within than other REI-specific software.The downside is QBO is not set up for REI so you'll need to do that or work with an expert to ensure it is set up for your business appropriately.Something else to keep in mind is your entity structure and how your entities file tax returns.

How should I proceed with structuring this plan?

Hey Allen, I don't mean to assume but it certainly sounds like some of the conventional lenders you spoke with might not be entirely familiar with investors portfolio structuring. 

If you only plan on owning 2-4 properties, then there's really no harm in self-funding them unless you know a better, safer way to make more than the going interest rate on that money (most investment mortgages right now are about 7%, maybe effectively 5.5-6% after taxes depending on your brackets and tax structure).

It just needs to be rent ready as the appraiser will do a rent survey and that rent amount that the appraiser comes up will be used to structure the loan- more on that below. 

A master lease to the organization structured with an annual escalation clause and a term limit - like up to 5 years - was a recommended way to get a contract. 

You will want to structure the LLC operating agreement where the lowest credit scores own the least in the LLC.

If there are no boarding house limitation to the number of unrelated persons, does this structuring matter?  

Another option is using different creative financing strategies - it's all about how you'll structure your deals.