The listing price is already low but with the amount of rehab it's going to need.

So I went into this knowing I had the potential to need to bail on an area. 

Your going to need to be licensed to do property management for properties that you have no ownership stake in.I do not think convincing owners to give you 1% ownership stake in their properties is a plausible strategy.

My goal is to set the tone that the lease is king and it's the rules all of us are playing by.

Maybe if you can't cost effectively tear it off, you could do rolled eaves on the roof and then add ivy trellis over (large) parts of the stone to tone it down.

Sure, you can buy plenty for 40-50, but they are likely going to need 20k+ in rehab and you won't build much/any equity into them. 60-70 can get you something rent-ready in a decent neighborhood, which is probably the best starting point for most new investors here. 

So aren't they going to need to see the original contract before they put down the money to make sure the contract says they need to give up there first born lol

If you do need their income, then you're going to need documentation verifying their income.

Don't do it...the mortgage lender is going to need to vet where the funds came from and a personal loan will not be an acceptable source as the expectation is that you are able to bring liquidity into the deal. 

The property was in great condition when we did our walk-through...only appeared to need a new roof.