For me at this point is too overwhelming for me, being that I am 7 months pregnant.

Moving out of state, moving closer to work, school or moving into a bigger home due to expanding family like "pregnant" and/or requiring additional rooms or larger GLA.If you purchase a 2-4 unit and try to purchase another 2-4 unit if they are not "Common" to the area you will have a hard time.

The wife was 8 months pregnant.

When I say that, I do not mean that you should treat them badly, just the opposite, but you should treat them in such a way that they know you will strictly enforce the lease agreement and that you are in control.I don't know what being pregnant has to do with the return of deposit, but....In regard to keeping the deposit, what does your lease say about it?  

What if the next person has great credit but is getting divorced or pregnant or ...

Hi Quinton,This may or may not be applicable to you, but if by "unemployed" you mean "on temporary disability, but my job is waiting for me when I get better, and we have an estimated return to work date," than this would be a scenario where ADA trumps ATR and you can still get a traditional mortgage.Fannie guideline on long-term/permanent disability, on social security disability, and on what may be applicable to you: "temporary leave income," which includes short term medical disabilities.For that last one:Just like women/men on maternity/paternity/pregnant leave, a gap between temporarily reduced income due to medical condition, and your normal income, can be made up for using asset depletion.

Three weeks after she moved in baby #3 was born (I had no idea she was pregnant).

Here's the kicker though....she is 5 months pregnant with our first child! 

My son was born in a duplex i bought while my wife was pregnant :) Your plan is solid if you can sacrifice as much as possible now for later.

I've seen a couple of properties in Springfield especially with a sign from the county, something along the lines of "this property is an environmental hazard due to lead, unsafe for human occupancy, especially for children under the age of 6 and pregnant women..."