Alternative would be non-QM where if rents cover PITI then the loan is approved, minimal doc requirements (credit report, appraisal, bank/asset statements, lease agreement, few others) but your rates are non-QM (6 to 9%). 

Another alternative it to try to find someone in the Central Valley or south of Gilroy.

We also have first right of refusal if he decides to sell the property, but for me, it was more important to prove this concept, and develop a relationship that has the potential to fuel a lot more deals down the road than to just secure this one property.

Get that education about alternative ways to finance, then use that information to make deals that work for the seller and you!

@Jaysen Medhurst thank you for your advice, any suggestions for alternative financing options

I’m using cozy for now but looking for an alternate payment method.  

Would it make more sense to: Purposely forgo legal tax write offs to show higher income and then more easily qualify for conventional financing, at lower rates and better terms ORKeep taxes as low as legally possible and seek alternative funding via private or hard money, typically at much higher rates ORIs there a 3rd alternative I'm not thinking about... like credit unionsWould greatly appreciate to get your perspective on this.  

The house has a monitor heating system (not very common, even where I am in NH) with a kerosene fuel source.

Don't forget about server farms, warehouses, mixed use, office, retail, towers, parking lots, fuel stations, car washes, repair shops, etc. 

Cash Flow is always important, but especially if you are starting out, because it's the fuel that moves you forward.