A 5 yr ARM and 7 yr ARM are also available with Fannie.

Since the lease explicitly states that all additional tenants must apply and be approved and a new lease be executed, else the tenant breaches the contract, are there any courses of action that I may take, even though the lease has concluded and I have no proof other than those clues, or is this a learning lesson for me to do more thorough/often walkthroughs?

Even in a city like New York City which has a wide variety of space to live renters are having a tough time finding supply available without paying an arm and a leg.

The standard Maryland Realtors Contract of Sale Agreement is explicitly not-assignable so you'll need to ask your Realtor about the assignability of the "realtors purchase agreement" in your state.

THe only thing that I think its important for others to understand is what it can't be used for and how to handle the funds at arms length

It's explicitly prohibited by both Fannie and Freddie.

Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.3.

Apply the same late fee if necessary and pause the services if they don't perform.Depending on how you drew up your lease, I've started explicitly stating how payments will be applied (chronologically) so that in your situation, you would be able to apply the next month's rent against the outstanding utility bill and the utility late fee.

I am planning on buying it through my self directed IRA with a non-recourse loan. 5.5% interest rate, 5/1 interest only ARM, 30 year term with prepayment penalty first 36 months.I will have property management for day to day as required by SDIRA. 

Books will give you 80% of what you need/want to know, then you can come to the forums armed with questions to refine your knowledge as you go/grow.1.