In this market, you need to get creative if you want things to work out fruitfully for you.

You need to meet with city engineering dept, city council member(s), utility managers, city utilities dept namely water and sewer to find out where they sit on capacity at the time and with the planned development connections. 

How would you work out structure repairs and maintenance (roof)?

Local community banks have a greater capacity to be flexible in their lending criteria, but only exercise that flexibility to the extent the know & trust the borrower.

I have been off all social media for 3 years and just recently returned, I STRONGLY recommend you give it a try in some capacity as it is very rewarding. 

If the house truly has income potential, possibly you could work out a private money loan deal with family/friends/investor to loan you the additional down payment to get the bigger house for the income potential.If your DTI supports a higher purchase price than your initial pre-approval then talk to the mortgage broker.The last thought that comes to mind is if you find a home that already has a leased tenant that would help demonstrate that the house is already an income property and cash flowing so the bank may see this as a lower risk of default.Ultimately the lender is looking to minimize risk so putting you in more house than you can afford isn't going to happen without some other risk mitigation steps like the ones I noted. 

I have come across many and all send me properties that the numbers don’t work out.

Currently being house hacked at full capacity, basement apartment, and 2 bedrooms.

I'd call around today and see what kind of terms you can get and make sure this will work out. 

Once we knew she could work from home indefinitely, I asked, why don’t we rent an Airbnb at a home near a beautiful nature site and work out of there for a week.