(where you acquired title to their property SUBJECT 2 their loan) We've been told that ONLY a PERSON (an individual) having the capacity to contract is QUALIFIED to act as an Attorney in Fact for an individual.

These sizes are too big for individual home owners to buy.  

I have a question about the Rental Application process and my situation:I have an application with two individual that agreed to both mutually divorce and they have 2 kids.

The irony is most investors who form LLC's do not operate them correctly, fail to obtain appropriate types or amounts of insurance coverage, fail to understand their coverage exclusions, take short cuts and don't obtain permits, use unlicensed and uninsured vendors,  fail to execute contracts with same vendors, don't understand the mechanism of additional insured status, indemnification etc. and are actually more prone to claims and conflict with their LLC than the individual who does not own real estate in an LLC but understands these tools I mentioned.

Although single moms may be the majority, I plan on partnering with local organizations and non-profits that may market my rentals to individuals using their services.

You assume the individual with a good application will keep the other straight and choose to rent to them.

I have formed 2 LLCs, each to hold the individual properties.

As for the refinance aspect, if you're going from LLC to individual (or vice versa), at my shop you would just transfer title into (or out of) your LLC at the close of escrow, so that part is no biggie.

Many newly build, luxury high rise condos were not qualified for any financing because the building didn’t have the required number of units owner occupied as required by Fannie, Freddie, and individual lenders.  

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.