Landlord does not report our on time payments to build our credit.

It may be best to bite the bullet, begin the process immediately, and be prepared to have an vacant apartment through the new year at least.  

My wife does not work and we have a good amount of "stupid" debt (credit cards/hospital bills/student loans) and not very much in savings and fair credit.

if not, that's a good way to go.Offer your time / skills / credit?

I've been listening to podcast over the last year and reading to prepare myself for crossing over the line to real estate investing.

Some people love the sandwich deal, but be prepared to potentially deal with headaches, because they do happen every once in a while.At the end of the day, which strategy you go with is entirely dependent on how much risk you're willing to tolerate, and whether or not the potential reward justifies the risk.

The new processor dinged my credit-hard!

If the renter is a licensed electrician, then you may concider it.The retail buyer will want the fee credited to them. 

House needs serious updating that they aren't prepared, or able to pay for (maybe another bathroom, some floor plan changes to optimize space). 2.

They will want to see what lenders will want to see to qualify the buyer; personal financial statements, credit reports, relevant experience, banking relationships, etc.