Are there any local credit unions that you've worked with that give favorable interest rates for renovation loans on investment properties?

The numbers absolutely favor owner occupied, as do interest rates and taxes in some locations.The part you are missing is not everyone can buy a house or wants to buy a house. 

You are able to get Fannie Mae or Freddie Mac loans which are very favorable and allow for better returns than apartments under $1 million. 

The fact that you could have sod tax free but turned in into a rental instead and now face taxes should work in your favor in the argument of intent. 

Also, the laws are a lot more in favor of the property owner than in residential since you don't have to worry about evicting someone from the place they actually live.

I'll do a "cross qualification" as a favor to a Realtor or other referral partner, but I'm not game if there's any pressure involved. 

However, considering the neighborhood, I don't know that would be the most favorable option for this particular community.

I was unable to gain favorable leverage due to some credit issues. 

However, you would likely take a pass on this property since the numbers don't work in your favor.  

The general approach would be to place the property in your personal name in order to refinance it at a more favorable rate - financing anything directly into an LLC will often come at a higher rate.