But honestly disputes between neighbors could easily be resolved by the police. 

You could go to the property and find that some crack head was cooking in a vacant unit, after a near miss with death and the police leaving, you could get a letter in a couple days from the city condeming the property due to contamination by the crack head.

However, if you reported your license to the police as lost or stolen and you have proof that of such, you may be able to send that proof to the collection agency/municipality that is sending these letters.

Right or wrong will be in the eyes of the new owner and his offer will be dependant upon his assessment of the situation.You can either accept it, or wait until you are forced out with no cash and a possible police record depending upon how you act to the police who will be there to see that you leave.

The police or what?

I'm trying to determine if the laws behave similarly to SDIRA laws, in that you or your lineal descendents (or ancestors) cannot receive any direct benefit, or if the laws apply only to the borrower specifically.

In any case, between Vegas and southern Wisconsin I have been a police officer for just over eleven years.As far as real estate background, back in Wisconsin (about 2005 or so) I became very interested in real estate investing and started looking for a home to repair and flip.

If said daughter is not married and has a significant other (SO), the SO can own the property  that mom can rent but not direct descendants.

I remember an early podcast where a police officer/Firefighter opened an investment trust, is this still a viable option?

If you call Raleigh police, they will issue each unauthorized person a Trespass Ticket and get their DL and attached it to the property address.