This would not prevent your debt to income ratio from being too high, because the mortgage would initially be in your name the banks will still view this the same.Lastly, the six figure bracket is not always as easy as it seems in real estate because things will come up that you completely did not expect and take a huge chunk out of what you're expecting.

If the NOD has been filed and the property is going through it's listing phase in the local paper leading up the the auction date are there any impediments that would prevent it from being a viable (assignable) deal?

Anyway, I don't have short sale experience but I can't see why a seller could prevent you from doing whatever you feel like doing with a property once you own it. 

No piece of paper can prevent hurt feelings if the situation turns bad.

that would also prevent anyone from stealing the a/c unit.

If I serve a 3 day notice to quit or cure how do I prevent Cozy from accepting partial payments?

You ought to be able to prevent most of what you're worried about through screening and regular, open communication with tenants.

Have any of you experienced this and know of an effective way to prevent the additional waste?

The couple that we know, have had their basement flooded twice, cleaned it out but have not done anything to prevent it from happening again.  

You won't lose anyone as there is nowhere else to go and proceeds will be to run the Park properly.The only kicker is to confirm that there are no state regulations that would prevent such a raise.