Start with compassion and seek to understand.Have you let your tenant know how much you appreciate her?

They are simply falling for anything with no direction or compass to guide them to the success they are looking for.

At this meeting I would try to come from an angle of compassion/concern for the health/well being of the dad & his health issues & challenges of the climbing the stairs.

"According to BBVA Compass, the subject property must either be located in a low-to-moderate income census tract (as determined by the Federal Financial Institutions Examination Council) or the loan applicants cannot have an income greater than 80% of the median income for the area, per the guidelines"http://www.housingwire.com/articles/33120-bbva-compass-launches-zero-percent-down-mortgage-programSounds great for those who invested in low income housing areas don't think Los Angeles would have areas your friend would want to live in

(Brandon Turner nice "thug lean" in the family pic) ;) Chris, if you can deal with helping people wean off drugs and all that goes with that, you will translate that compassion and understanding into working with distressed sellers/renters.

(you set your wholesale fee amount, that was an example)   Most important tho is what your seller is needing, listen to your seller, and try very hard to accommodate their needs, have compassion for their  situation, answer all questions and remember honesty and integrity will take you a LONG WAY in this business!!!  

I can't tell you how many times a prospective tenant has whipped out a compass to see if the rooms/house face the "proper" way.You can ignore it, or worse, make light of it, and lose prospective business; or, you can roll with the flow...make lemonade out of lemons...Close the Deal.

What knocked your moral compass so far askew?

I agree with those who replied safety first then compassion. 

Showing compassion and empathy to a people is more valuable than the profit you will make.