Our experience was the extra cost of the coin-op machines, the utilities consumed and the damage/abuse they received pretty much consumed any revenue generated.

My issue with the FHA route is that I have no proof of income, and if I went in on it with my business partner, I'm worried his credit score may get us out right denied.

Daisy chains are always discovered at some point (though often its existence is denied) and often cause a ton of confusion and a sheer waste of time.

He ranted and carried on and screamed that I was a bigoted bastard who was abusing him for no good reason.

I'm speaking strictly for the state of Colorado, you have to be denied coverage by 3 admitted carriers before you can go the E&S (non-admitted) route, and typically E&S policies are more expensive, but perhaps you could get a short term policy that would cover you until you can get the roof fixed, and then go back to your prior carrier...if you still wanted to do business with them.

If you got hit by a bus, does you estate have enough liquidity to pay for friend off?

Cropped tail, and they didn't deny it's a full rottie when I confronted them.

Remind him that the other two will not be denied based on income or credit history but only on criminal history and rental history, as it relates to destruction of property, etc.This should put him/them at ease and at the same time get you what you need.

I will also do my best to follow what has been done before me, can't deny results!

Just be careful about fair housing laws, as this strategy gets tricky if you ever deny renters to try and hold out for a buyer.