His personal name appears almost nowhere in the evidence/exhibits.

I’ve been exploring MF properties because complexes in the $1M to $1.5M range appear to generate better NOI.

I'm also concerned about the liability that I might be exposed to here by allowing what appears to be a business to operate out of my rental.

I have found some information that might be helpful John.There are government backed programs like Fannie Mae Homestyle Renovation Loan and Freddie Mac Home Possible Renovation Loan, in addition to the FHA 203k loan. 

And you'll have the best rate/points options with a primary residence.Option #2 is great, especially if you're willing to move into one of the units (because the down payment minimum is just 5% or 3.5% depending on program), but as you mentioned it's really tough here to find small multifamily here.

Are there specific military programs or contacts I should look into for housing opportunities?

It is virtually daily that i see purchases or considered purchases that appear to have no path to success.  

I personally like one sponsor who has been through multiple real estate cycles without losing any investor money, puts very large amounts of skin in the game, is conservatively leveraged and has a very good 1031 exchange program.

Like I brokered a 22  lot development of duplex's for a builder and just charged him 30k flat fee per sale.. they sold for 225k each back in 05 when I did this and I sold them all in one weekend at a big event i paid for in San Jose CA.. all to CA investors it was my fly and buy program I did in those days..

There are programs for first time homebuyers.