To make matters worse, they have no skin in the game once the Tenant moves in.

I will echo what several have already said...Here is my take, and keep in mind that I am an investor/agent so I very much have some "skin in the game" when it comes to this ruling. 

Consider the pros and cons of mixing family with RE with no skin in the game.

By partnering with a wholesaler and rehabber from the area we control the costs of the rehab and give the contractor skin in the game.

Yeah - the issue is though, from the lenders perspective, unless they absolutely trust you completely (not only trust that will try, but will succeed) - its hard even to come up with a fair portion because you'd have no downside or "skin in the game" - i.e. no incentive to keep going if the project derails because you have nothing really to lose

You require an all-cash purchase (as opposed to allowing them to tie up the property for months at a time with no skin in the game)2.

I've talked to multi people in the real estate place and they all have glowing reviews about his training.

Depends on what you call "Skin in the game''.

It’s been a great experience and I highly recommend you trying a smaller bank or credit union if you haven’t and maybe when you’re talking to them tell them you’ll be happy to open an account there and keep some money there or will put the business accounts associated with the new rental property in their bank to give them some more skin in the game.

I'd also collect a security deposit from that new tenant so that she has some "skin in the game".