I want to to learn from each deal and try to make the next one even better.I appreciate your response.

All -I was recently listening to a podcast (and have not been able to find which podcast I was listening to) to where an individual used a specific type of loan that allowed him to take out a mortgage with only 3% down where he lived in the home and rented out a room or a portion of the house.

The companies will vary to to state, but you can give Guard Insurance a try. 

If everything else checks out, then we would definitely take an applicant who doesn't have rental verification. 

For the meantime, he would be willing to pay 12 months up front to cover the first lease term... and then, may be i could do some sort of requalification for renewal that would entail income verification/new credit run, etc..While the offer of 12 months payment upfront seems tempting, i am worried on worse case after 12 months if he does not qualify, get a job, abd chose to not move out...Anyone delt with such situation before or have expert opinion on such cases???

I have been binge listening to to the podcasts over the last few weeks as I am somewhat new to the podcast and recently they mentioned a company that sells turnkey properties that have already been flipped and with tenant.

If I'm not, then I would want full vacancy (and tenant history and screening verification from the previous owner) unless I feel like I could fill the vacancies and the numbers makes sense with the expected vacancy included. 

If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff. 6.

I then sell on Lease Option getting $20k to $25k down, and I charge going rental rates and the difference between a 4% loan that has been paid on for 4 or 5 years gives me instant equity and a payment that allows me to to cash flow from $500 on up depending on the property.

Does anyone know any recent news on this or what source to go to to find any updates?