Even if you took a commission from someone "on the side" you could be looked at by a government entity (not sure which one) for a crime. 

My biggest concern is not being able to list the home until early April due to Wells Fargo's regulation.  

My questions is is there any way we can buy that house with 0 down with a government loan like fha home in 5?

@Alan WolkovIf you purchase a property at a foreclosure auction and later find that there is a government lien or lien that survives the foreclosure auction, you will be responsible and indebted.

***5 years ago I was renting and receiving government support!

There are many government aided loans that you can use to get the property for low or no money down.

Many STR (short term rental) sites, such as Airbnb, will allow a "cleaning fee" to be added to the cost, which you can use to offset your expenses without raising your publicised rate.As far as regulation goes, it is always a primary concern of mine when looking at STR opportunities...

If tenants are in you may be caught in a bad situation if they were not well vetted.I know Phillipsburg is near you and sort of "popped" into my head in your descp.Many of NJ multi families in that area were grandfathered in to local regulations and for that reason tend to be old, and the older in general tend to require more rehabilitation.Good luck!

FTC is also more 'regulated' than other Northern Colorado communities, i.e., max. number of occupants, certain properties may also have rent control.    

Add to that the new Dodd-Frank regulations that put constraints on the owner finance part of the wrap.