Should I now go talk to banks about a conventional loan for "livable" houses or a HML for "non-liveable" houses to get pre-qualified (from what I have been reading, banks will not lend on houses that are not in decent condition) or should I try to get a deal under contract and then seek financing? 

They must be used to purchase investment real estate and qualified costs of closing.  

I put together a spreadsheet here to help potential house hackers quickly analyze whether or not a property qualifies.

So, I am into wholesaling and I am creating my cash buyers list. I have a list of people that I am going to call to see if they are interested in getting information about houses that I find. I feel pretty confident a...

If Chase took this position, it's likely the borrower doesn't qualify under a financial hardship....he just wants to get rid of an upside down property.  

I wouldn't worry about the teenage daughter's credit score since (as you pointed out) she may not even have one and it sounds like the mother will qualify on her own without relying on any income from the daughter. 

Remember this when the turnkey providers come after you.Also, I put together a spreadsheet here to help potential house hackers quickly analyze whether or not a three- or four-unit property qualifies under the FHA self-sufficiency test, which you mentioned in your post.

Question: Do you know if you qualify for a FHA loan?

Also, if you have good credit of a 700 or above - you may qualify for a business line of credit at 0% interest for 12-15 months which will help you get started in your business if you do not have liquid funds, or cannot get a list of "private lenders" together.

What bank or mortgage company can finance her for a home, she would not qualify as a first time buyer and a hard money loan is out of the question for her.