From my understanding, the other people's money approach is usually reserved for those who are experienced and are trusted with other's money, or people who have money and just refinance it back out of all the properties they buy.

A credit union (usually) that does not sell their loans up to Fannie and Freddie. 

How'd you resolve this and get business back to usual, and what would you recommend someone in my shoes should be looking at as a best course of action?

Might get $3000 through Airbnb for a 1 bed; for me the extra work and risk aren't worth it. 

You can chalk it up to the usual suspects.

Your purchase price and construction costs will usually far exceed anything any HML will charge.

Just be aware if you make an offer with an inspection contingency and I (or anyone else) makes an offer without one, the other offer is usually stronger (even sometimes for less money).

If you can qualify for conventional with your expenses on your debt to income, then just try to make large extra payments on the CC. 

And I find it interesting that past apartment syndicators have stepped back from the market when they can't buy based on a rule like that.If we have another nasty recession like in 2008 I think it's likely that people will not pay an extra $100/month in rent for an upgraded kitchen.

An inspection from a home inspector would be an extra precaution they would certainly tell you if there is anything that should be addressed, or even maintenance that should be performed to prevent more serious issues.