I was interested in the "boarding style" (renting out each of the individual rooms) as it seems it could bring in much higher month to month rents.

It's a 3 BR, 2 bath ranch style with only a crawlspace.

In case the color/style gets discontinued.And do you keep the extra at the property?

By having the refinance/Return of Capital event in the same year as the first Distributable Cash, it should make no difference if this is European or American style waterfall.Let's look at this from two perspectives.

We both came in with 665 and 680 and have 10% available.At this point we are out $1000 on non-refundable services, possibly will be out of the earnest money, will be out of $2300 more for the lease termination at the apartment which we also will need to move out since it has been rented anticipating our exit in May.Overall this seems extremely deceptive to explain minimum requirement prior to applying (would never have applied if we didn’t qualify), being approved, only to be bait and switch style roped into paying money we do not have to move in or essentially choose to be homeless (obviously we would just rent another place but it’s an extremely short notice move and apartments aren’t that plentiful)Any advice on where to go from here?

Both styles of financing do require usually 20-30% down, unless you bond well with your seller, and they prefer you put 0% down...

Is it important to have professional realtor style headshots? 

I agree with @James Carlson that the part of town that will be best suited for the style of home you are looking for is likely in Northglenn, but I'd also add in southern/western Aurora - which would be much better for both of y'alls commutes. 

The most common portfolio style loan in Texas is a 20 year adjustable rate loan.

The Mediterranean-style retreat spans four acres in Bradbury Estates, a guard-gated community just a few ironic miles north of Baldwin Park (where Snyder’s grandparents Harry and Esther Snyder opened the first In-N-Out Burger in 1948).