Our company buys short sales in all 49 states, except New Mexico.

If not, why are you making an exception for this tenant?  

This theory sounds good on paper but I know very few people to actually do this with success [except @Brandon Turner ].To complicate matters further, you are looking at an attached double, which are rare here in Indianapolis, that is zoned as two separate properties.As mentioned earlier, this defeats the "benefits" of having two doors under one roof/deed.In addition, this type of property is tough to resell in the future as well.I'd suggest passing on this one and whole concept - IMHO.  

(The exception would be for owner/occupant loans that are covered by Dodd-Frank)  This is even more true when you are talking about commercial loans. 

-Every single carpet had stains all over it (most came out with professional carpet cleaning except the paint and bleach stains).

Often times they will make an exception.   

The lawns green right up again when the rain returns.We require tenants in our SFRs to take care of the landscaping, except we tend to the trees and shrubs.

No lender can require that a borrower remain in the property forever over the term of a loan except for government liens that might be financed under low income qualifications (for example, a city finances a sewer project to a low income homeowner with a forgiveness of debt arrangement, the debt may be forgiven so long as the property is occupied). 

Its basically a whole new build -- everything is new except the framing and some of the drywall we didnt need to touch.I'm attaching some pics at the end to show current status.

All units occupied except two.