Now, we're considering other ways to track our rehab expenses.

The weather is very hot and water is expensive down here in Texas.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Neither has paid any rent during this time frame and the owner has had to paid all expenses. 

Does the residency requirement for primary housing require living in a legal unit?

The information is for the IRS reporting requirements.  

And you don't need to disclose it to the bank as you are living there as required for the the lower down payment.

Those states have "income source" as a protected class and as far as I know are only the west coast (CA, OR, WA) and the new england area (MA, CT, VT, NJ ect) Account Closed  In most states you are not required to accept Sec 8, and as such if you choose not to you could deny processing an applicant that is using a voucher.

But I would say “Consider your timing.”Real estate is expensive right now, and money  is expensive right now (APR wise).The fed is expected to start cutting rates later this year.