I'd love any input on how to evaluate this decision.

I still have a lot of research to do before I make my final decision, and I appreciate the advice you have for creating my plan for investing before making that decision for myself.

It's in a short sale because the owner can no longer make payments, and cannot sell the house for its full value, but the Bank feels that they can make enough on the house such that short sale is a better business decision than a foreclosure.

And I do feel for this poor lady.

The tenant simply believes that I do not know the market rent.Realize no matter how well you screen the tenants you can get a poor tenant. 

Aloha, I found a distressed property that I am trying to purchase from a gentleman but he is only on the mortgage and not the deed as the wife got it in the divorce.however she is in foreclosure now and poorly affecting his credit.

For instance the title "Principal" usually just lets other people know you can make decisions on behalf of the company, which CEO/President also conveys. 

Get to the bottom of what is going on and then make an informed decision.

This is not a landlords decision it is the tenants.

You will see things in a different light as you work through them and will be much better prepared to make educated decisions.