This trade or business requirement can be particularly difficult for rental properties to meet and is usually based on the extent of the taxpayer's involvement in the rental activity.

If you fix it up, what will the income and expenses be and what are properties selling for in the area (usually based on cap rate). 

I usually use 5 years. 

I usually use 8.33 (1 month in twelve) as a benchmark when analysing a property.Given your numbers, I am also presuming that the tenants pay their own heat/utilities (save water).This will give you and operating ratio between 43.5% and 49% (which may still be light, but could be correct if tenants are carrying their own utilities)This will leave you with NOI between $3200 and $2900/mth.  

One thing I can say about Foreign National borrowers, you can usually bet they have good savings, multiple paid on time mortgages and other loans under their belts when they contact me.     

  #4 You can try to approach any nearby ALF or rehabilitation or mental health company and ask if they are willing to expand their portfolio and you can lease it to them for 2 or 5 years (usually 1.5 or 2 or 2.5 times standard rent).

However, there is almost no difference in title companies other than a couple fees (not usually very expensive).

I rent most of my houses to flight students now as I can usually justify a little more rent since they are basically paying by the room. 

If you 1031 exchange you can buy more passive commercial assets where you do not usually deal with these types of issues.

You could also do a seller carry back which may reduce your overall down payment but it will still be at least 20% of the borrowed amount and seller carry back is usually only done in commercial loans.