They have a history in the town that includes loosing their children for undisclosed reasons.

The eviction / turnover history on a particular property might provide some useful information when you're deciding whether or not to buy and you're negotiating with he Seller.

There is nothing bad on the report, but it is lacking any type of employment history.

I would imagine some form of performance history would be required?

The reason we went with co-signing is because since we're young, I wanted her to be able to have more "history" of adult-credit like things so in the future it will benefit her immensely. 

The purpose of the Quit Claim deeds is to totally isolate the "company" assets for liability reasons, also so that the "company" is something I can sell one day to another investor, or give to my daughter by making her a member.

Later that year they divorced and unbeknownst to him his now ex-wife forged his signature and quit claim the deed to herself while he was away helping his sick daughter in another state..

They will probably average your pay over the last two years to establish what you are qualified for.If you can't get a conventional loan you can try a hard money lender, some offer loans on rental properties at reasonable rates, then after the properties have established rental history you can then more easily refi with conventional.

Do we have to disclose past history of cracking?

My daughter is going away to college next fall.