. - Should I still run the background check and everything on them/process them as a regular applicant?

If you're putting in a full application on a property that's listed just to see if you can get approved there, then "deciding to wait" for a year, then yes, you are utterly and completely wasting their time.

Neither of those rooms were described as a kitchen or a bedroom but in speaking with the realtor she says there is a c/o application in for the second building.

Before I invest the little money I have as I'm a student into software like PropStream.

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Thank you for your reply you just confirmed what I have already suspected all these new softwares out here offering you the world and delivering nothing I was looking at prop stream also they wanted $97 a month but people are having the same issue .

You can certainly ask for mortgage application document in that case, did the buyer provide pre-approval letter when submitting offer?

To avail yourself of these systems you need the proper legal apparatus and software system(s). 

@Sakib JamalThere could be a couple reasons your tax software was not allowing you to net real estate losses against your other income.Was your income above $150,000?

I have never required an inherited tenant to fill out a rental application, nor have I ever run their credit history.