It will be hard to convince an underwriter that you are married living separately, although not impossible with the right circumstances. 

Ask more about the circumstances around the "eviction".

A third late will be a triggering of a eviction and the tenant will be out.A tenant that pays late under no circumstances should ever be considered a "otherwise good tenant".Landlords that have tenants that pay late have not properly trained them and are responsible for the problem.

If you just look at the City of Toronto itself (3 million of the 7+ million Greater Toronto and Hamilton Area) it has, within it, dozens of distinct "markets." 

And under no circumstances should you return the deposit or hand them any cash prior to vacancy.

Not sure if this would be feasible but under certain circumstances you could pull something like this off.More than likely, based on not just having to open up spaces and the space considerations of new duct-work, but also the service/additional metering requirements to get this done to the utility's liking - I'm guessing the capEx required will not pencil this option out. 

Under that circumstance my personal liability as a homeowner will extend to the in law.

Hence as @Karen Rittenhouse reiterated, there's a distinct difference between 1. wholesaling a property that you own and 2. 

I don't really want to waste a lot of time and money on this because of circumstances. 

People's circumstances change and I'd hate for you to get caught up in that.Having said this, the elephant in the room on this is - why would you even think of syndicating $1.5M deal?