But maybe you can survive if you only have one property with minimal activity.  

We are seeing the average 3 bed 2 bath with minimal rehab running in the 150K-200K range and property taxes are currently low, creating a good opportunity here to prop up the rental market which is slowly running out of supply to the increased demand. 

A couple of things you could try to help minimize your risk.1.Doing a virtual walk through with the realtor asking questions and taking notes on problem areas.2.Have a virtual meeting where the realtor introduces you to the contractor or even multiple contractors to discuss the problem areas and solutions.

Fannie and Freddie are in the low 5's if not high 4's on a 30 year with 0 points and minimal processing/underwriting/closing fees.Like I said, if you qualify, go for the conventional financing. 

One requires minimal work and the other is going to be a massive project.

Do you go after those properties where you do a rehab for minimal return, but you know it is going to be a safe solid rental for many years and you add it to continue to be able to build your portfolio in a neighborhood you are comfortable with and are paying down an appreciating asset while creating cash flow.

I am not looking for fixers and hopefully properties that will require minimal rent ready prep. 

Additionally we would like to minimize the upfront lender fee.

PMI is minimal compared to the rents it allows you to make.

Most food servers, exotic dancers, and bar tenders, have very minimal 'base' income, it's mostly tip income, and a LOT of the time it's under the table money that the person does not voluntarily report to the IRS and pay taxes on.So, not a solution for you today.