If a tenant asked me (which has never happened BTW) if I was honest I believe I'd ask them what they thought and if they were....If any landlord feels that they must approve someone if their credit score hits some mark, they have sufficient income and a good residency record, they are wrong.

Would a simple disclosure that I do have a real estate license be sufficient?

You can request to remove it with conventional at 80% LTV, or it'll drop off automatically at 78%.You will have to pass a self-sufficiency test for 3-4 units with FHA, meaning the rents from the property (including the one you'd be living in) have to cover 100% of the monthly payment.

Yes, it would be best to start with the amount that would be sufficient for investing. 

By putting 5% down and with the profit from our current house, we'd be left with about $16k after closing to make renovations to the building and the unfinished basement which is sufficient.

This is known as the self-sufficiency rule.

Is it wiser to pay a lawyer to set up my LLC or is something like Rocketlawyer.com sufficient?  

Contractor - needs to have 203k experience or at least 203k education along with sufficient financials to afford the start up costs and ongoing expenses on 203k projects; best to use a contractor who has the accreditation as a Certified 203k ContractorThere is a great FAQ for the 203k on that 203k Contractor site that actually discusses the recommended steps for a successful 203k.203k's will take an extra 15-30 days to close but are quite easy to do with the right people helping you.

So you are wholesaling a property to a Buyer who does not have sufficient capital to give to you to pay off your Seller.  

.$600-700 (at these levels) is significant (not as significant as the $2500-3000 per month that could be reduced by hiring a FULL time cleaner and ambitious entrepreneurial teenager looking for work) but nonetheless is sufficient to cover ALL of the electricity, water, sewer, trash and internet that vacation rentals require.