I'm asking this question because I want to start vetting investor-friendly brokerages now so I can be ready to go when I get my license.So, that said, I'm curious what the process is like when candidates apply to a brokerage.

They are selling you generic information that may or may not apply to were you conduct your business. 99.9% of time it is rehashed, recycled, misinformation.

If neither of those apply, did the tenant move someone in illegally (i.e., who was the 4th person)?

Same answer still applies: pull each file manually.

I know most banks want you to have at least 20% down, but does that apply with private lenders?

@William Rankins you need to go in and figure all of the cost of the rehab if it needs any, take that off of the ARV make any adjustments as you think you may need then take off the amount you want to make off of the deal and subtract that from the ARV and apply.

I do not think that landlord-tenant laws apply as OP stated that this is a sale with owner financing.

We are able apply for cash our refinance as soon as we are rehabbed, rented and ready to do so.

I read that you have to live in the property for an FHA loan, also how did you apply for multiple FHA loans, i read you can apply for one at a time after a year

You'll be applying for a mortgage through a lender, and only that lender can tell you what their particular underwriting rules are.You can't bid on a HUD home on your own, the bid has to be submitted by a real estate agent who has registered with HUD.