Most of these hard money lenders require some form of credit/proof of income and a fee for each submission.

Expect to shoulder the burden of copious proof - and even then it may not be granted. 

What do you mean by not having proof of income?

I don't see how any city/state could possibly enforce requiring proof that all work done in the house was permitted.

Operators of very small homes are taking home strong 6-figure incomes.It's essentially recession-proof as the supply of aging baby boom seniors needing care will be in place for the foreseeable future.Residents of an ALF are generally in need of assistance with "Activities of Daily Living", called ADL. 

Otherwise, because a guest has to write and request, I know that we have dodged MANY bullets by not allowing IB.  

If you are planning to use an insured mortgage (less than 20% down for example) they will want proof that you will be moving in the new property, and if the person with the qualifying income (your husband) is staying in BC that could cause some issues.

Make sure that you have a clear case for all of those repairs: before and after pictures, move-in form, etc The more evidence you have against them, the easier it will be to proof if they decide that they don't agree with your deduction. 

Peeling paint, inside or outside, handrails on stairs over 2 steps, broken glass, working electric and plumbing and operational heat source. 

I’m a newbie, I’ve always dreamt of buying multi-family units & now I’m finally at a place where I have proof of income and make decent money. upon further research, here in Florida it’s difficult to find any without major rehab work.