Just because they included that clause in their contract doesn't make it enforceable. 

Lenders will not send out an LE without a complete application (which includes a property address) because it's basically binding.

Loss of Use / Loss of Rents: Normally, there is a 20% included limit.

Are they going to start paying down that credit card debt, turn over a new leaf, and avoid bankruptcy for the next decade? 

Interest rates and cap rates change, competition changes, your PM ends up being horrible, lots of variables.Just to throw you a monkey wrench, in your killer spreadsheet does it include the credit score, income, and employer of every resident? 

This factoring includes the presence of competent contractors who can limit unforeseen surprises and costs.Myth 2: They're Too Risky to Invest InThere is risk in any investment; however, distressed properties are not inherently riskier than any other real estate investment.

Between a 1031 Exchange, HELOCs, and a partnership, I'm up to 15 doors including my personal residence.

Her mother is willing to (co-sign) and has excellent credit and debt to income ratio that will more than allow but I’m not sure the best way to structure this for the house to still be in our name?  

Send it to every address they give you including the current rental assuming it will be forwarded to the address they gave the post office.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.