So perhaps this could imply that the tenants are not paying rent and that is what led the borrower to default?

No.... charge people to become trainers to teach your system, then take a cut of their profits.

(NO ADVERTISEMENT INTENDED OR IMPLIED IN THIS RESPONSE)I have two others in "in the middle of the country". 

What you are implying beyond just getting mail at the property is that you would at some point sign a statement that you would be occupying the property as a primary residence.

If you’re takin pets, add a pet fee, put “PET FRIENDLY” as your first headline words, inspect monthly for the first 4 months, expect a surprising number of “im a dog trainer so my animal is exceptional” responses since calling yourself a dog trainer is as easy as grabbing a saw and calling yourself a carpenter, and ALWAYS meet the animal - preferably at the showing so you see how it reacts in a higher stress situation of new people and new noises etc.

@Ron S.The OP implied the owner had money so she would not have an FHA/VA. 

The courts would see right through that attempt.I'm also not sure if marriage implies joint ownership or not (marriage laws are crazy and vary, so just something to ask your attorney about).I second the usefulness of an umbrella policy as well as, of course, being aware of your local rental laws, requirements, and regulations.

Is that what you're implying?

I am trying to read between the lines on your comments, but cannot tell if you implied that we must report the sales expenses 50/50.

I imply from your assumptions that the units are currently way under-market (for my own back of the napkin math's sake, if you bought the property at the same 6.45 cap, then the NOI is currently ~$58k).