That is a very different scenario than what you outline.

I read the Fair Housing Memo which outlined their interpretation of the minimum occupancy to be 2 persons per bedroom. 

I have thought many MANY times about putting together a flow chart or other simple, easy to understand guide for this, but the more you try to outline it and flowchart it, the more convoluted it becomes.  

I really like how you outline quitting your job and starting from ground zero in this post.

What @Jerry W. outlined is just the steps that one goes through to determine ownership.Piercing a veil is completely different.  

@Jon Holdman and @Bryan Hancock have outlined some salient points that clearly present a challenge or road block to the method you plan to use to acquire these properties.Why not take a step back and try for the lower hanging fruits or smaller multifamily units, which you can use as a springboard to future higher capacity multifamily purchases?

This is often to referred to as "Inspection Response", and is where most PSAs (Purchase and Sale Agreements) outline the procedure and timelines for responding to issues discovered during inspection (such as buyer requesting a lower price, etc.).

You just need a note outlining the terms and a security deed so you cant sell it without paying them off on the note.  

Let her know the choice is hers, its all outlined in the lease she signed.

The BEST way to get it done, i guess you could call this the "right way", is go to an asset protection/estate planning or real estate attorney with an outline of exactly what you're plans are, and have them give you a proposal for a corporate structure.It's not the cheapest thing on the planet, but worth doing.