However, the thing to keep in mind is that if you impose the fee, and she refuses to pay it, all you can do is allow it to accrue along with the late fees that are caused by the ongoing balance, and then serve eviction for nonpayment once the moratorium is lifted.

Because the banks give you a big chunk of needed money if you are going to live there... one time that you live in Switzerland the bank might cause problems (I have Portuguese friends that told to the bank that they were going to live in the acquired house and after rent it without problem, because the bank has no way to proof if you live there or not).

I worry that a sponsor will include an investor (a BOZO) that will cause problems for the entire deal. 

I would call a banker cause it will be pretty specific to your credit score, dti, w-2, assets etc. etc. 

What did you learn from those books, taken together with other information, caused you to arrive at your ideas? 

A wise investor / friend of mine once said if his first offer doesn't cause him to blush, he knows he offered too much.  

The potential high LTV risk is correct but as long as you can make payments I am not sure if it causes a real issue.

In Jay's Book on Negotiating Real Estate, he mentions referencing a company policy during a negotiation that states the company must take possession of the property at closing (no lease-back), which seems fairly straight forward, but definitely could have caused some headaches if it wasn't followed.

He says this is probably where the cable company has their junction box and that could cause the area to hold water.

The real concern that I have is that if the Fed keeps printing money, which they currently are that this could even lead to hyperinflation, which then causes interest rates to skyrocket and therefore significantly decreasing demand (lot of people cannot afford the high down payments, etc + high interest rate make properties less attractive to investors that want to create a positive cash flow).