The effect of this rule is that once you have 10 mortgaged properties you cannot get any more conforming loans.If both you and your wife can qualify, each can get 10 conforming loans. 

@Aaron Deane Many of the answers you are looking for can be found here:How to Effectively Conduct Joint Venture Agreements as a Real Estate Investor596231-how-do-i-properly-construct-a-purchase-with-a-partnership591376-create-an-llc-for-first-partnership-best-way-to-do-so526244-taking-on-partner-s-and-limiting-our-liabilitesGood luck!

Damages that aren’t just wear and tearBut does the same apply for under an eviction?

Umbrella is supposed to protect you from a lawsuit pegging you for some insane damages - like if someone is injured or killed on your property.

In the kitchen I was gonna keep the kitchen cabinets but found water damage, so then I went on the lower end and bought base home depot cabinets that were unfinished.

She has not received any documentation to that effect but received a letter from an attorney offering his services to help her through the foreclosure.

Then using Lowes SOR & various damaged cabinets ($981).

Because they had renters insurance their company came in, did an estimate and wrote me a check for the damages and repairs. 

Or can we get a heloc now and have it not effect refi ing the house later for more inversting?

Your most effective path may be to find an experienced wholesaler and partner up with her.