Applying for multiple loans at the same time can be a red flag. - You mention $250K equity in your primary.

The deal seems too good to be true, which always throws up a red flag. 

Basically, we need a banker but prefer less red tape than our local banks.

To me, it would be a red flag if the tenant was unable or unwilling to pay with a debit or credit card.

This is just such a red zone whenever you involve family - from experience. 

Just some of the things I worry about are, no cause evictions, restricted back ground checks, year long lease that will auto convert to a month to month(tenant decides and is in control), service animal abuse and the gag order that comes with it, relocation fees(min one month rent), one year statue for tenant to sue landlord of which requires a min of three month rent paid to tenant along with any fees or actual damages, free legal aid and counsel for renters paid by taxpayers, and a list of existing red tape.

Your post is over a year old, so I wouldn't be surprised if the sites has been updated, but even when I look in a green shaded area (like the one circled in red below) the maps tell me that these areas are not classified as low income census tract areas.

Also recently I was having a conversation with a property inspector in Jacksonville who said that PM's just aren't interested in these types of houses as they don't earn them much money, which I can see, and this sent up yet more red flags.

If you go a little farther west on Red Bridge it gets better (but prices increase too). 

It's kind of red-flaggy to me that a tenant that's been there for a month is already asking to move other people in with her.