Can i charge 150$ as an application fee but set rents at 10% lower than market to get the best possible tenant and profit off the rest?

If you can find a way to remove the tenant and move in yourself for the first 12 months you can take advantage of FHA loans which cater to lower credit and allow 3-5% down. 

I work in a tire manufacturer plant and was saving up, working tons of overtime, all to invest.But after projecting forward it was going to take a very long time for me to get enough money saved up to invest in anything outside of lower end stuff (I don't want lower end properties and headaches that comes with it)So I changed my thinking into how can I make more faster.

You stated the facts yourself - the current tenant is not paying a lower rent on time.

The idea is to complete the renovations, get it filled up with tenants, and then refinance to a lower rate lender.

It lowers the number of potential buyers that can afford to purchase a house and the value of houses.

@William Henze In 2011-2013, I purchased about 2 dozen lower end condos at the the trustee sales.

Pricing for the lower credit scores is higher for obvious reasons.

If there were no commissions to be paid, I (the seller) could lower the price accordingly. 

I live on Long Island and my husband and I want to do a house hack to lower our housing expemsws.