My assumption was that she could start showing it asap (while it is still occupied), to reduce the potential vacancy time.

Hey @Justin Williams,I'll start by saying even the most flexible loan scenarios will look at credit. how it relates to the loan process, however, will differ depending on which loan type you go with. my gut punch reaction in this is that your credit score is more about limiting your LTV due to the subject prperty being a multi-family, or potentially driving the rate up so that you no longer qualify (rates are higher on MF than on SFR typically)....it also could be about how your lender is calculating (or not calculating) the rental income coming from the different units.

My focus is on finding a discounted SFH or Townhome that can act as a live-in flip for 1 - 2 years to maximize rent potential before it actually becoming a rental for my portfolio.

I don't know enough about TX real estate law to be able to fully evaluate the potential moves here.  

I just got a lender and pre approved, and have found a potential house.  

Have you checked out Facebook groups for potential leads?

They are getting what they really want, and you are crafting the deal to where it will still make sense for you.One potential issue is if what is most important to them is most important to you as well.

Knowing it means understanding what the potential (real) cash flow will be, based on what you are looking to pay. 

If your market supports medium term rental demand and you're having issues getting booked, put yourself in a potential guests shoes when reviewing your listing. 

You want to be protected from all losses and the rent check not coming for a year while the unit is being rebuilt is one of those potential losses.