@Thuy Pham-Satrappe I manage a few in higher crime areas and it requires more active Management that some other properties.

Ask questions, get to know the renters, and document the condition of each rental so you have a record from that point forward and can hold tenants responsible for damages.Your offer to purchase should include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).

Account Closed - I agree, a coach is not required but a mentor is in my opinion. 

It's a lease agreement until the requirement is fulfilled.

This kind of revelation requires legal action.  

Is she entitled to previous joint returns with her ex if that is required? 

I am not suggesting you can't acquire a BRRRR home (although it's more difficult right now with the higher interest rates), or you will necessarily fair better with the purchase that requires you to leave your $40,000 of capital in the property.

I'm wondering if anyone has been successful at closing with this type of loan product and if so, what factors (credit/DTI/reserves, etc) were required for you to be approved?

The ability to make a cash offer and the absence of steps required to obtain hard money makes it easier.

Typically, these deals require some sort of down payments as well, not negotiable.