My spouse only makes about 45k pre tax and I essentially cover most of our living expenses except for groceries. 

There are organizations that can provide the family with rental assistance; every municipality has one - and the assistance covers utilities as well. 

I am guessing they probably raised $15-25M from investors for the deal, so while the bank would still be covered investors would appear to collect maybe 10-20 cents on the dollar if they were to liquidate.if that's the case then I don't see buying one year really does anything unless I am missing something ? 

We cover a large geographical area (nearly 400 miles) because there are usually only a few STR eligible properties for sale in any given city.  

The masterminds often encourage students to finance the new-car like entrance fees on a credit card, on the promise of just a single deal covering all the entrance costs. 

Partner Driven covered 100% of the financing, including the $220,000 purchase price.

though; (1) there are tenants in the house on a two year lease (payments are enough to cover mortgage payments), and (2) the Seller wants the option to buy back the property in two years.

@Trevor McCormick to piggyback off what others have said, determine if you are trying to maximize it as an investment or utilize it as a vacation home you will STR to help cover expenses, as this could dictate which type of property you are looking for. 

If the loan lasts many years or it becomes a problem child, the points we get does not cover all our efforts.

Any semi-intelligent agent is going to do the math and want to cover their expenses.