We have yet to ask for a background check and credit check, because we only do that once we want to move forward with their application.

Once you get past the limits on conventional loans you're in the commercial space, with terms like you're seeing. 

Definitely check into your local rebates offered, as well as any applicable federal tax incentives.

They can simply refuse to take responsibility and you still can not collect easily.I would not accept this applicant but if you have zero other options and you wish to drop your screening standards never offer a risky tenant applicant a term lease.

The typical BRRRR strategy, but such a great way to leverage your limited financial resources.You asked specifically about financing. 

Tenants: There are still no tenant applications, even though the property is listed for rent for more than a month now.

If you dont make it legal than when you go to sell it you will have the same challenges and limit your buyer pool. 

The seller concession limit on an FHA mortgage is 6%. 

Additionally, because I am recently a 1099 employee, I don't qualify for conventional mortgages or FHA loans, so the appeal of house hacking isn't as applicable here.

We use a paper application, pre-screen, and scan it to a service if they make the first cut.