We slow flipped two homes over the past 5 years and had some good results.

Condition: Roof leaks in a couple of places, floor around the commode in the master bath is week and sinking, Central HVAC system does not work, mold infestation as a result of the recent SC flood, and the house is full of junk as the seller was a hoarder. 

Do you have the results of their background check available?

Although I also think it's worth examining your mindset: instead of an action giving you a result you weren't hoping for being classed a "waste of time", just think of it as an intelligent way to make sure your operating at optimal efficiency.

For example, if we added a 4th partner who is based in Atlanta to live in the property for a certain period of time, could the loan be viewed as a regular way mortgage versus an investment mortgage, resulting is us having to put down much less than 20%?

The definition depends on a person’s point of view, but the end result is the same.

I've been burned too many times matching the online bid, only to have the seller up their bid to an idiot amount.  

Generally speaking, would buy and hold investors consider a purchase of a portfolio of rental properties, 90% occupied, for 85% ARV if that 85% resulted in acceptable cashflow (say $15,000/month) and over $2 million in equity?

The best results would be if you had a Contractor estimate you on the repairs.

A lot of information (and mis-information) I have gotten from lenders seems to be a result of their own rules and not actually loan guidelines.