What we've done to mitigate some of that is including some non-refundable fees for cleaning, rekeying, etc, in addition to the deposit.

I can give you my more specific opinions if you let me know if you are accredited or non-accredited?

It also weeds out the non-serious people.

How do you get around this government implemented hurdle?

Sam Hendricks Option fees are non-fundable and don't go towards the purchase.

Your Taxable Value on this property is $ 71,500.So here how it breaks down for your taxes in Rock Hill SC:$71,500 x 6% = $4290 (6% is non-owner occupied taxable rate)$4290 x  .4108 = $1762.33 per year  (.4108 is the current 2017 millage rate)So your taxes are going to be $146.86 per month.Here is a copy of current millage rates per county in my area.After looking at your numbers I would think your rehab budget is low.I have a lot of property in Rock Hill and you need to make sure you get a home inspection. 

It is exactly the same as any tenant except you have a additional notice to your government tenant as well as the resident tenant.If the government does not approve the rent increase your resident tennat moves out, same as any tennat, and you screen for a new one.Again this is the same with giving notice to any tennat.

Non warrantable condos are always an issue, there are lenders that will finance them, at a slightly higher rate of course and usually with a larger down payment.  

There aren't really any formulas for this, your best bet might be to look at the pictures in rental comps other than that I would estimate the difference to be about $100 in rent for every $1000 of rental value if everything in a non-updated unit is clean, usable and looks reasonably nice.

If you get a conventional loan for a Non Owner Occupied (NOO) property, then you wouldn't need to live in it at all.