I suspect what you're facing here is too low of a rent but that's gut speculation, not math.If the rent proves out to be right for your area and the cash flow is still as light as what you describe, in a market like this selling would bring on significant equity capital for a more carefully planned deal. 

Based on what you described this should be feasible as long as you qualify for the other items with an FHA loan.

And...I never had a tenant make a statement about not having a disposer or dishwasher wen viewing, renting, or after moving  in.

Depending on how your family has reported its income from real estate on your taxes, there's the possibility that your mom could be viewed as a 1099 Contractor and so could lean on two-years worth of taxes to demonstrate income. 

I wasn’t a fan of renting from them either because of reviews, but we took a chance because they had the most options and it was so easy to view homes and do paperwork.  

When we pick up a new property, we require tenants to sign our lease at the earliest legal opportunity, per the timing guidelines described above.

Luke, I have limited knowledge of Dayton, but based on google street view, your risks are fairly real.Property to right is poorly kept and to left is a tow yard/car shop.  

Describe the terms surrounding the $15k for $100k option

@Stephanie MccolaughYes, it may impact price and coverage if it’s a short term rental but what you are describing is just a rental property on a month to month lease not a short term rental.

What you just described is just the tip of the iceberg.