This would give a definite buyer in the contractor who would now have "skin" in the game for refinancing from a bank.

You'll need a lot of cash to funnel in to income property.If you're qualified and have cash to deploy; syndication is likely a good option.

In other words, even if my situation changes and I have the ability to buy them out early, i often keep them in until I at least hit the projections I used to get them on board.  

I can emphatically tell you that was a concern across the board. 

How do you qualify tenants when they apply together as roommates?

I do similar for some commercial deals.It's my understanding that as long as I'm not saying "here's a deal, jump on board," I'm ok.

I started buying property in Manchester towards the end of college but did so utilizing mostly private lending as I certainly didn't qualify for traditional financing.

I have someone interested and qualified to rent, but they probably will only need it for about 60 days.

Many times you can even buy a property that is already cash flowing and in great shape at a price discounted enough to qualify for a full cash out refi.

There are exceptions for military members who qualify, according to HUD 4000.1 page 128:Borrowers who are military personnel, who cannot physically reside in a Property because they are on Active Duty, are still considered owner occupants and are eligible for maximum financing if a Family Member of the Borrower will occupy the subject Property as their Principal Residence, or the Borrower intends to occupy the subject Property upon discharge from military service.”So as long as you “intend” on living there you can use an FHA loan.