I am not interested in why a applicant does not qualify or to complicating my process by having to qualify a second non tenant, chase that individual for payment and possibly risk having to evict. 

Basically, I want to make sure that my tenants will be able to pay if one of them ups and leaves, disappears, or gets hit by a bus.Is it ok to require minimum income of 5x for household and let's say 2x for individual?

And in addition, sellers know there is demand for MF so they jack up their selling price and i usually end up with a, what it seems to be, a low ball offer all the time.Thanks for sharing your thoughts. 

I would also like additional capital to -Fix up that home (instead of me paying for the repairs/upgrades over time)Invest in stocks, (As I've been learning/studying for over a year now, making small amounts here and there as a trader) Potential upgrades for my business (me and my family run a successful auto body and paint shop)Because of my good credit (almost 800) I feel like some type of bank/company/individual must be out there willing to work with me!

That is simply because they are higher risk for the lender since they are not insured by a government entity and the lender will demand to be compensated for that risk. 

Typically, the documents included are: Annual Financials, Articles of Incorporation, Budget, Bylaws, CC&Rs, Insurance Declaration Page, Regular Meeting Minutes, Resale Certificate/Demand, Reserve Report, Rules and Regulations.

Nothing impressive to buy at the moment.I am aware that NPN are mostly traded in bulk tapes between banks and accredited investors. any referral sources who JV with banks/accredited investors on large NPN purchase deals and willing to distribute couple of notes to individual investor like me?

I'm not sure how I'd go about charging the water prices back to the tenants since, as far as I know, the water isn't metered individually to the two units.

However there could always be individual circumstances that might make a shorter (or longer) holding period appropriate.It sounds like you bought it with the intent to hold for productive use. 

-Small units are in huge demand.