Your broker may have forgotten, but when the appraiser reports back to the lender that it is a rooming house, the lender will walk away or only underwrite an LTV of 50-65%.Your best bet is either a private lender or finding a conventional lender which uses auto-approval software (TD is an example) and mortgage agent/broker who can steer you towards an application that qualifies for auto-approval (if at all possible).When we were first in the same situation, we approached a family member with a proposal to have their name on title and live in the house (rent and utilities free) in exchange for their serving as the Den Mother to keep the house in order.  

Typically your safest bet is stating there was a qualified candidate who submitted their application before them.

Seems like Podio is going to be the best bet starting out and just integrate it with a dialer, RVM, and texting platform.

We're definitely looking at the option #2 for now @ 60% to be safe.

They claim that the property was just rehabbed but even with the 50% rule, I should be safe.

Allowing uneducated renters to make electrical changes is very risky - I've seen all sorts of crazy stuff that may 'work' but is clearly not code or safe.  

a small, local bank would be the best bet.

As long as its in escrow your safe.

I like Roberts idea of parging it to be safe but it's not something that usually gets done. 

@Don Konipol After researching it more it looks like my best bet might be to just flip the houses by selling the land contract/note to a note buyer.