Based on what you wrote, and the predicament you're in, I would recommend two things. 

The moral of this story is, if your son wants to do this and is willing to take on the responsibility while open to learning what he does not know, go for it.

Whats moral process?

What's the moral of this story?

She has asked to have up to 10 kids in the home, which I morally (and practically) feel is not reasonable or safe.

You can exhaust all your resources, "fighting city hall" in an ambiguous case, for which the judge will most likely side against you, and your best case scenario is merely a moral win.

I was lucky in the sense that I stumbled across this predicament, but I certainly would never have stumbled upon it if I wasn't touring a hundred other houses that felt like a waste of time once I walked in.Definitely a work harder, not smarter approach, that worked out in the end.  

I also believed that the house was in a "B-class" neighborhood -- I've been informed by 3 independent RE pro's that it is "C-class".The moral of the story is "Trust but verify".   

My adrenaline was pumping at this point realizing the predicament I had placed myself in.

Originally posted by @Julian Morales:@Matt Nico thanks for the feedback, and by any chance do you know if it’s possible to do one refinance for multiple single family homes?