Mainly because of the apartment complexes (condos) right there.  

I think the main idea of my post is that banks don't typically lend to businesses without sufficient assets and business operations - likewise, banks typically don't lend to individuals without income and credit.

My main question is how to get started? 

I'm mainly posting this one to get more eyes on my plan and see what the BP community can offer as advice.

My main concern is the financial part. 

Explore both options with your lenders and see which will benefit you.

It was a little stressful as we were footing the bill for the mortgage ourselves for a month or two more than we would have liked, but there lies another benefit of going in with a partner to spread out risk and financials.  

Like @Austin Andrews said, the condition of the main systems (roof, stacks, hvac, electrical) matter a lot.

I could see the benefit to not having short term leasing surrounding your home, but I would obviously be losing a huge portion of the investor market.3.

But the main thing here is how to go forward.