However, if the Boyfriend pays rent and she moves out entirely and he has a proper lease agreement signed to her as an owner, then that rental income can be used to offset the monthly mortgage payment and help her qualify for another property from a "lending perspective."

They don’t verify guests properly; screening is weak because they’re mainly focused on hotels/flights/car rentals.

Also do research on what's required to properly manage a LLC so the veil cannot be pierced. 

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

It requires you to fix necessary items that permit occupancy, IE, functioning windows and doors, proper egress, working MEPs.

I was thinking - go ahead and sue, when discovery comes into play and they have to testify under oath (for example were they raising money properly and how were they managing money) - many will not want to answer that question while on the stand. 

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

This product sounds amazing because you can immediately gain a ton of equity, customize it yourself, have protection via the inspector to ensure things are done properly/up to code, and you can put 3.5% down on the entire thing including construction costs!!

You don't have to do it all at once, and doing things in the proper order is going to be far better than taking chances with too much debt in an effort to accomplish all of your goals at the same time.

Agree with @Jake Baker—real estate is very balance-sheet heavy, so working with a bookkeeper who truly understands a balance sheet, the industry, and how to structure QBO properly will save you a ton of headaches down the road.