Toward the middle on to the end of a long investing career, hopefully you will have significant assets unencumbered by debt, or at least with lots of equity.  

Slightly lower rates would probably reset things on a much longer scale and thus less painful overall, but no one has the patience for that; there's going to be way too much pressure to make a move when some of these defaults start to happen in a big way, and since we are probably going to remain a nation of debtors for as long as anyone in here is alive there's no real prospect of growth beyond borrowing. 

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

Please don't get into CC debt or take out more loans than you can handle for projects like this. 

Rather than consummate deals, funds may be more likely to offer debt or preferred equity positions to allow owners to right-size their capital stack without giving up full ownership.Here are several graphs illustrating the current national commercial hospitality market in The United States of America:Full Commercial Hospitality Market Report Here: https://d2saw6je89goi1.cloudfront.net/uploads/digital_asset/file/1183586/United_States-Hospitality-Capital_National-2024-01-15_compressed__1_.pdf 

And by prime time I mean the main criteria is  Out of State owners  NO DEBT  or owned it many years. 

You do well, but not really well enough to play real ball.Depending on your comfort level, I'd buy debt or a mix of buying debt + buying 2-3 properties in one area and growing a portfolio of houses in a couple of different areas that fit your goals.

I’m thinking maybe this can keep her record free of any additional debt or could take another mortgage loan out in her name later down the line ? 

Like Emily said, a number of shocking facts (or not so shocking to many landlords) have come out in the press recently on how few Americans can come up with a thousand or even four hundred dollar in an emergency....A FINRA study on The Financial Fragility of Renters was just one (with lots of stats).So no downpayment is a big one, as is credit score, and even with those who have resources, they  may want the flexibility to move or freedom from extra work or costs of maintaining and repairing the home.Even items like student loan debt or fear about the economy hold others back (still some out there who feel the sting of the housing bust).

So finding motivated seller leads give the seller or owner a way out of their bad situation, i.e. debt, and allows a buyer to take them out of the situation simultaneously finding ways to lower debt or raise value of the house to make a profit..