The impact of not having F/f financing is large (>10%) if the appraiser recognizes this potential issue.  

I've asked my clients a similar question and have developed tools for them to minimize this, but I find there are a few different types of clients.Manager managed - these folks have no issues as they simply upload their year end statement from their property manager, their 1098 mortgage statement and any other one-off expenses they may have paid for outside of the management company. 

For big BRRRR projects, hiring a project manager or having boots on the ground can be worth the investment to keep GCs on track and catch issues early.I’ve had OOS clients who’ve been successful both ways—some met their GCs in person and others didn’t.

Based on your numbers, and assuming you have a credit score high enough and have never filed for BK, you shouldn't have an issue getting approved for an HML to buy/rehab the property that I would estimate at about $370k-$375k (which includes 100% of the rehab costs).

we are still assessing the rentals we manage but overall are just finding a few minor issues so far. 

Be prepared to face fluctuations in the market, unexpected repairs, and tenant issues.

The same issue happened, we would get pressured to make over 150 dials a day, yet us AQ specialists got nothing in return, and it's been nearly a year and i haven't gotten paid by either company.

By house hacking, you're immediately positioned as a landlord, which will adequately pressure you to learn how to structure your leases, screen applications, collect rental payments, resolve the nuances of managing tenants and addressing property issues, etc.

With this scenario we both have skin in the game: His work and my materials.

Based on a quick answer from Perplexity it seems like there would be no issue with you buying the home and collecting passive income, but you may not be allowed to manage it yourself since that is considered active work.