They typically expect 30-40% down and 10-15% in reserves depending on the risk factors of the property.  

Typically with a property this size you require the schedule E tax transcripts of the seller from the IRS.

It unlikely calls for a closing/sale without substantial completion, and the bank shouldn't have an issue with funding with a typical "punch list",  perhaps holding back a few grand.  

There is a utility shed with all four water heaters and a washer & dryer, which unit #1 has always used.

Sub meter, separate utilities, invest a little cash into the place so that you can command a higher rent.  

That typically is investors.

I think it also depends on where you live - in places like New York and increasingly the Seattle area, the monthly payment is about the same or less to buy (if you have at least a 10% down payment and depending on the price of the home) and you get so much more for your money.Having a home is a bigger responsibility but owning typically far outweighs renting almost anywhere in the country.

because I have never used an online background check service like smart move I assumed that the process online would be virtually identical to the paper process that typical tenant would go through when renting any property.

Buy or inherit and hold all their lives while working the properties for income.I've seen teachers, firemen, software engineers and all sorts of people utilize both strategies successfully.

That typically is investors.