If you are wholesaling and you're broker is cool with it, just make sure your process is transparent...a lot of brokers are not investors and they simply don't understand your perspective of using creativity to solve problems and earn a buck. 

I just told him that he was denied for not disclosing the bankruptcy and told him that he’s not allowed to stay there to prevent him from moving in and will follow up to ensure that he doesn’t.

Save up money for a down-payment to ensure you're not over-leveraged.

We will obviously ensure they carry proper insurance, abide by the law, and submit to regular inspections.Question: if they live in the home and operate a business, would you charge them additional rent for the business side?

So I like the creativity but hate that it is near my house.  

The point is think creatively and find ways to have others pay your Mortgage!

Or is there another creative way to save up without extending myself too far?

Just ensure they initial by each point when you go over the lease with them might do the trick.  

So basically I am here in an effort to find some more ideas on creative financing, and how I can put the money we currently have saved (around 30-40k) to work for us, in an effort to get into the market.

A “creative person”, someone who didn’t post this idea on a public website, might suggest you could do a 1031 exchange in to a property (h3) that might someday, say more than a year later, become your new primary after it was a rental.