In addition, Abu sent all her kids to college -- some overseas!

Would I get denied because of the recent transfer or would the asset value alone be enough?

1099 C is an interesting question ask your accountant.. note holder asking to be paid off . this is just a negotiation.. you offer what you want to offer and they can accept or deny. 

They make 3x rent, but given the missed payments and credit scores, I plan to deny the applications.

I hear something like this and I just think "Geeze, am I just missing the plot on this, I can get a bus, I can knowledge vomit, walk properties, intro" and hell, I wouldn't need $40k, I'd be happy at $1k. 

Many will not allow the USE like this, not so much deny the cash flow. 

So all in all, “Tenant B” is abusing our dad by taking advantage of him because “Tenant B” is always short rent and continues to breach her contract due to our dads dementia diagnosis. 

I looked it up and it seems like you might be screwed either way, even people who had Flood Insurance are having claims denied because of the 2 storms having different types of damage.

I was confronted with a community living in real poverty, substance abuse, and general neglect for their well being.

The appraiser came in and appraised it as a 2 bedroom and called the 3rd bedroom as a "Den". Is