Have you explored any bank statement loan options ? 

Not a super-helpful answer I know, but the options are pretty vast!

We have two options on ours and the owner can choose. 

. ($50K sales price, 5K lost rent, 5K in commissions and closing costs)Account Closed has a good option.

Any option in the middle of these two is when trouble mostly happens.

We give them two options for screening. they can either provide documentation that they are traveling for their job or they can pay for tenant screening.

Hey Maungmaung,You can definitely ask for the rent rolls for the seller and after you're under contract and during option period you can ask the listing agent for copies of the lease agreements.

I recommend connecting with a great lender like @Zack Karp to discuss your options as a house hacker.

So, I have an option to buy my brother's house and I would buy it subject to.

Of your two options, I like some version of #1......