that way you can utilize a lower downpayment and potentially rent by the room?

It sounds like what you are describing is more like someone renting your basement space.  

I can afford to not be able to raise rents or even lower rents if necessary.

They are worried about underwriting the deal to today's costs with the concern that rents might not rise to cover the additional costs (keep in mind, I'm in FL with huge insurance rate jumps...but other areas are feeling similar pain).

For due diligence, is it appropriate to ask for records showing current tenants are paying their rent?

Should we have lower rents compared to empty apartments?

Hello-I made a typo on the lease that stated rent would be late after the 10th or each month but it should have been the 5th.

But most investors are looking to rent out the property to cover at least these expenses and cash flow on top of this.

Rent Out Their Home: Prepare your parents' home for the rental market to generate income.2.

There are plethora of landlord platforms that force you to use their own 3rd party banks to deposit rent and charge $2.5-$5 per transaction to directly ACH into bank of your choice (ex: I love Chase Bank).