The only way the landlord would not qualify would be if they had committed fraud against HUD in the past and were banned from the program.  

To get the desired protection, you have to follow some rules to create a separate identity of the LLC such as maintaining it's separate book, singing all the lease in its name, and more.

If you are just trying to buy 2 properties simultaneously with $0 down and not actually live in one of them, well then that's mortgage fraud. 

The problem is if the owner gets caught and implement you, it could implement you in a scheme to fraud the federal government.

Mortgage fraud should not be a consideration.

There's a dozen different ways that fraud would be uncovered. 

She’s not a fraud - she’s telling you up front she has something to hide. 

Depreciating retired assets is technically tax fraud.

Especially when fraud would be involved.

If you are getting a loan as a primary residence you must intend to occupy the property as your residence. if you buy and say you are buying it as your residence but the whole time you are planning to basically not live in it, that is  lying and could get you in trouble for mortgage fraud. you may not get caught, but if you do it is taken seriously, beside legal trouble lender could call the mortgage due if they found out you were lying.