A couple of things you should look at: What's your credit score and credit history look like?

(The second OOR passed away recently and all documentation for her is in place).

However, FHA documents do not mention any requirements regarding appliances.

OR  Look at the other multifamilies around your area, and take an average of those properties allocation if that is better than yours and document it if you ever get audited. 

cozy.coTreat it like a business and have documentation/proof that you did so and that could be helpful.Asking the lender for the SFH like @Aaron K. suggested is a great idea!

sa=t&source=web&rct=j&url=https://www.hud.gov/sites/documents/hudcontingencyplanfinal.pdf&ved=2ahUKEwizj83X3PbfAhUKIqwKHaNvCY4QFjAAegQIBhAB&usg=AOvVaw38LuDvDE_KFXu4qtemqti8

How are they able to refinance without having prior experience and no stable work history?

It you communicate your rental criteria to prospective tenants in advance before accepting an application and application fee (required in Washington State), you would not run into this problem.It's perfectly fine to reject an application or approve it with conditions based on legal rental criteria.You may want to use a standard form, such as an "Adverse Action Notice".Here's some information from the one we use:----------ADVERSE ACTION NOTICEApplicant name ____________Applicant mailing address ___________This notice is to inform you that your application to rent the property located at ______________  has been:[] Rejected[] Approved with conditions:[] Residency requires an increased monthly rent of $_____[] Residency requires increased [] fee or [] deposit of $ _____[] Residency requires last month’s rent[] Residency requires a qualified guarantor[] Other requirementAdverse action on your application was based on one or more of the following:[] Information contained in a consumer credit report *[] The consumer credit report did not contain sufficient information *[] Information received in a criminal record[] Information received in a civil record[] Information received from references[] Information received from previous rental history or reference[] Information received from employment verification[] Inaccurate, false, or misleading statements or missing critical information on the application*If you were rejected based on a consumer credit report, you can request a copy of your credit report for free from the below-checked agency.[] Experian[] Equifax[] TransunionDated this day of ________.Agent/Owner Signature _________

Your intention would be from the communication that you had when you bought the property, or your communication with your contractor, or documented in your overall business plan or LLC operating agreements and stuff. 

As part of the application, she provided documentation of the monthly social security awards for each of the three prospective tenants.