I am trying to be super carful with these deals and cant really afford to pay out for an appraisal and then the property fall short of the loan criteria which intern leaves me in the hole and no loan.  

Was a criminal background check done?

You can find every criminal offense all the way down to minor traffic violations.

I’ve seen that service advertised for $400 and up, which is nuts, considering, in the case of a lease-option, it doesn’t include the criminal background check, eviction check, previous landlord checks, visit to current rental, and probably not the employment verification a smart landlord does.

This comes with the assumption you have access to good property managers.As far as international investing more specifically, I know of several countries where the risk is far less than the US.  

I have been attending college for about four years; I obtained my Associate in Science, I conducted behavioral research as an intern for one year, I became Vice President of Leadership in Phi Theta Kappa local chapter, and I was active in school activities.

Or you could find out if you dad's company, or any other large general contractors, are hiring interns.

Several FNMA restrictions apply plus the current lender may have their own internal guidelines. 

(He is probably frustrated internally as well because he is not done what he is primarily gifted at). 

There's no special process for criminals, the missing or the deceased.