I am specifically looking to rent out to section 8.

Still, the individuals there are high end earners depending on the specific area.Also, there are no tourist attractions.

The issue I am facing is that the property is zoned for residential use only, and I am interested in renting out both the main house and the pool house as separate units.

Because we needed more time to gather quotes for the work that needed to be done by contractors we trusted, we extended the deadlines in the Property Inspections Notice (PIN) on multiple occasions so we had enough time to better understand the issues and also protect the buyer's deposit.I'd get a few good contractors on hand, have them give estimates (see if they can even do it using the inspection report if visiting the property isn't possible) and have the seller compensate you an amount that you think is fair (it may not cover everything, but is it enough to still make the deal work?)

I am also have issues with this construction group....

They told you it's not allowed, so don't push the issue.

Can you be more specific?

I also don't get involved with Buyers as the contract language and specifics should be reviewed by an attorney

To address this, we agreed that I would work in the business for six months to verify the financials, which so far align with his POS system.My main issue is that at 23, I don't have strong financials to get a conventional loan at 75% LTV with a ~7% rate, and the seller's lack of financials complicates bank approval.

Whether or not 7% make or breaks the deal depends on the cap rate and the specifics of the deal.