I think it is perfectly legitimate to adjust the ratio for your personal situation AS LONG AS you don't cheat to make an investment work.

Denver is reasonably centrally located and I am assuming that this would be the easiest venue for Josh to organize.

They still need to live some where.I would definitely rent to them, especially with the news (hopefully legitimate) that they are getting a promotion.

There is the mentality---completely legitimate---that the buyer's money will be made over time as a buy/hold strategy.

Do you think it is not legitimate and they are not playing I by the rules?

Okay, that sounds more legitimate than I was thinking it was.  

The only question I have is if the appeal allows a new defense (the newly discovered "service animal" as 'protected class' defense, not part of the first eviction case) vs. judgement based on lack of jurisdiction, improper venue, or such gross irregularity of procedure as to make the judgment void.

What we may lack are the allies to legitimize such an action in the eyes of the world.

If I find anything wrong with it or any surprises (or my repair estimates come back too high), I can back out  of the contract and not lose my earnest money.Financing - if I am unavailable to get financing at acceptable terms, I can back out of the contract and not lose my earnest money.There are very legitimate reasons to ask for an inspection period (for example, maybe the utilities are turned off and you are unable to inspect plumbing, electrical, or HVAC without them being on). 

As long as you are honest and upfront, most conventional lenders will not have a problem.It's only when they feel like facts were intentionally witheld, the FRAUD warnings go off and spoil the deal.There is nothing fraudulent or unethical about buying low and selling high, as long as the home legitimately appraises for the B-C transaction.Just be upfront and disclose everything BEFORE closing.