This is especially true if the company provides any kind of match. 

From the info I've gathered, landlords can no longer have "blanket" policies on criminal history - no more saying any positive result is an automatic fail.

Also if that someone does miss something that's discovered during an audit, they get fined and not me (obviously a pattern will result in a severed relationship, so I keep everything compliant to the best of my ability so that final QC/compliance package is a slow ball I'm pitching their way that they can knock out of the park).

Also, if either of us wanted to transfer full ownership to one of us later on, will that result in a taxable transaction?

I've sent a few letters out that way, just targeting properties that aren't for sale but match what I want.

Once you have your renter criteria created, you could put it in your rental listing so that those who believe they are qualified are more likely to apply than those who don't match with your renter expectations.

Tried to match the stain to the period. 

As mentioned above this will probably result on increased rents for tenants.

As a result, I can only buy 3-4 properties a year.

Purchasing an investment property increases the level of difficulty of your tax return.Purchasing a house-hack is even more difficult.To make it even more difficult - you plan to make improvements so you have to determine which costs are currently expensed and which are capitalized.Not only have you acquired an investment property but you also acquired a personal residence.As a result, direct expenses towards your investment property and indirect expenses are deductible business expenses that can be used to decrease your net income from rental activities.With all that is said - you are trying to operate a business so I would hire professionals to help you with your tasks.