If your rental rate is below the market anyway, a Tenant might consider this to be win as they would get the lower rate in the beginning and just rise to the level they were looking at everywhere else.Step clauses can be written right into the lease, or created by using 3 month lease terms with an auto-renewal at the step up rental rate price. 

I like how you broke down the options and emphasized working with an agent to find the right balance between budget and impact. 

Hey Frank, not sure who you're replying to but I want to emphasize based on what you said pretty much EVERY mortgage broker should have 10-20 options of lenders who can do this.

I think that would be a win-win for everyone. 

All interest rates and payment plans are custom made to work for both parties therefor creating a win win scenario.As far as partnering with the banks goes.

You win in both scenarios.

Any horror stories or good wins in this niche?

Nobody wins in that situation. 

In your example, you bid $220k for the property and are the winning bidder.

The one with evidence wins.