What is the recourse for the tenant who signed the lease under each individuals name?

Don't have answers, but definitely following this thread!

This is the most unique real estate investor club, education, networking and mastermind event in the US!

But that’s not necessarily the case.

Then follow the rest of the advice given here.

What are the costs for the value adds, the expected hold time, and the expected sale price? 

If, however, there are any gaps at all in any of the above items, even a gap so small a mouse can squeeze through, that tenant will exploit it and your life just became a 7th Level of Dante's Inferno.....:)

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

As to the quandary posed by the OP: The root of the issue is that it basically sucks to be an RE investor these days.

Sometimes they forget to tell you that many tenants in Detroit don't pay (depending on the property manager skill and the type of tenant) - but taxes are very high in the city and so is insurance.