This is one of my top 5 pet peeves, as you can imagine. 

Right now I would imagine you're best bet is a small balance Freddie or fannie loans depending on loan size and location.

As you can imagine, this almost completely leaves the burden of due diligence on the buyer, and a lot can go "unmentioned".You'll often encounter tenants while on showings, and you should take every opportunity to politely introduce yourself (first name) and ask them about their experience there. 

There is a large closet off the living room that I would imagine some would look at to be a very small bedroom however, this room does not have any windows so I do not believe it can be used as a bedroom. 

The suppliers say they are familiar with building codes in the US, but I still imagine there would be a lot of work to ensure code compliance, as well as installing the home on a new foundation, connect to utilities, etc. 

I know you hate losing earnest money, but imagine closing and finding a lot of expensive repairs on this house.  

I would imagine any strong Chicago lease would be fine, but the CAR is something we do. 

I would imagine they wouldn't be too appreciated of that and would put up a fight although they signed a legal contract to sell for $x.I had actually put a nice lot under contract (I was going to close under my name as normal) from an owner that was doing a FSBO.

So imagine how many of me there are out there you will be calling where you are wasting both my and your time.  

I imagine there are still a large number of “mom and pop” hosts who had no idea there were taxes or a permit needed who’ll be weeded out, but they prop weren’t our competition anyway  ;-) Good luck!