Shaq doesn't get half the credit he deserves for his business savvy.

Go wtih what works - but intelligently.We offer a free month of rent, but to avoid desperate people, we credit 50% towards their 2nd month (to make sure they can afford 1st month rent + SD) and then credit the other 50% the 5th month.

@Nate Gilbert Thank you, I found that the most helpful posts when I was first learning were the ones that included details on the numbers so I am try to return the favor to the community. 

Most non-FHA loans will require at least 15% down but you'll have to have amazing credit.

I've been self-employed for only 6 months, and loans are proving difficult to come by despite my great credit (not to brag, I'm moreso frustrated and seeking help).

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

It will likely still continue being a difficulty.You mentioned bills, are they credit card bills?

A business line of credit through your LLC protects personal assets, builds business credit, and may allow interest deductions, but it might be harder to secure for a new LLC.

im in Orange County CA and there is a huge market here for room by room rentals here. i've been doing this for quite some time (over a decade now), and it certainly has its pro's and cons. my advice if you go about this is make sure you do proper vetting before moving someone in... not only for financials/ credit-worthiness, but also for temperament and expectations in a co-living space. we ask a lot of questions like "how do you handle conflict?"

600+ credit score; income validation; we have potential tenants meet the existing tenants to make sure there is a good fit.