I'd say that over 60% of the time, the "automated underwriting system" (AUS) only calls for one year of tax returns for self employed persons.

Figure out your goals, how you want to utilize REI to accomplish them and utilize your strengths to select which method as there are tons of ways to make money in REI.   

Oklahoma has a little known state insurance program that’s $25/month for teachers & $40 for self employed.

I'm self employed with my wife as my business partner so no problem with the balance on that part of the spectrum you aske about because we determine how hard we work "balanced" with everything else.

If these two methods fail then I feel like you could do 2 things.

I am a new member and have been reading through materials, I going to be in a position to purchase a couple of rural properties in Michigan.This has me wondering to what my best options may be for buy and hold rental properties, go traditional financing methods, or look at starting right away with BRRRR?

Using this method, the borrower's monthly payment is still affordable but we collect what's owed to us at the back end. 

There is not real growth in large scale employers, etc.

@Daniel Mendez, @Charles Carillo is spot on - the issue many folks have with turnkey as a general model is that the opportunity to force appreciation and sell quickly for a profit is removed - because that's what the turnkey company has done, that's how we make money.If you BRRRR or other DIY method, you find a distressed property, you renovate it, you either flip it for a profit or hold it as a rental.

If you have defined criteria for applicant qualifications that do not discriminate or violate any local, state or federal laws but still serve your needs for finding quality tenants, that is the best method for protecting yourself.