The lenders I've been talking with don't know if its possible just because I've been doing self employed work for only a year now and they want two, I've thought about a DSCR loan but I don't want to commit mortgage fraud.

Syndications are only suitable to players who have experience with deep due diligence, basic understanding of fraud prevention/detection techniques and enough real estate experience to understand the market, macro economy and how those factors will impact the investment. 

Some people cater to visiting sport teams.Some people like to flirt with risk.....just saw a guy near me get reported for is AirBnb that he used a VA loan to buy, but never occupied it....too many parties, neighbors complained, he still didn't stop it, so they contacted Inspector General and reported him for loan fraud. 

That kind of stuff is what really drives me the most nuts about the program, the fraud/abuse of the system.

If you were offering an exorbitant amount as a subterfuge for paying more than the short sale price, that would be fraud.

Will it be mortgage fraud if I were to rent it out?

Setting forth the transaction as a lease will also save you from the fact that your mortgage is unlikely to be assumable, TILA disclosures, claims of fraud down the line when he's unable to get the financing in a year, etc.

For illustration purposes if a tenant or passerby trips and becomes  hurt because of a premises liability event, if you discriminate against a tenant or buyer, fail to pay your contractor for work that was performed or any of the many fact patterns that could lead to claim exposure presents itself do you really believe your identity is going to stop a plaintiffs attorney from filing a claim, lien etc?

In fact, it can be called fraud. 

There are a lot of rules about the various offering types and investor accreditation to "protect" investors from fraud or making unsuitable investments.The JOBS Act is making it easier for companies to raise money from the public and imposes minimal requirements for suitability.