Also, if someone is doing something commercially and getting paid for it factors into it too.

Yet if you as the buyer or seller aren't comfortable its another factor that should be addressed.Kudos,Mary

However, you should still apply the other factors like favorable references and other background checks when screening these tenants.

The very reason you pay the title company is to handle all those details and do it correctly.The title companies I deal with get it right every time.

It will be some time before attorneys can determine the scope of compensating factors for qualified mortgages or higher priced loans.

In the majority of our loans, when you factor 75% of as-is value for purchase PLUS 75% of the rehab costs, tge amount of money you are effectively able to get is 80-90% of the total of what you will need.  

This doesnt really apply to 1-4 unit lending unless if its a local or portfolio lender however mostly applicable to 5+ multi family, commercial, and business lending. 5 C's of lending Character (integrity), Capacity(cash flow or ability to service debt), Collateral (equity in property to secure debt), Capital (networth), and Conditions (economy, and external factors)

Problem is that my ideal house is expensive because they are normally attached to a large house that a single person doesn’t need.

So the renovation and trust factor im not worried about.Im more concerned with the real estate market in Merrillville, my 2 properties there are in good areas, the houses just need extensive rehab work.

I'd start with your target property and then recognize what your ideal tenant is looking for in a rental.