Do this—— Contract for sale for 12 months—- get a 10-15k credit line at Home Depot (pay off in 60 days!)

Security deposit can be used for damages on the property that are not ordinary.

I am concerned about differing credit scores and incomes. 

Hard Money rates are too outrageous, some conventional lenders will lend for the purchase price but not the rehab, and lines of credit are an option but it's hard to get a business loan large enough to cover 100% of the purchase plus rehab if any.So, here's where I stand.

Just thinking ahead another step... if a cosigner doesn't meet the standards I've set forth (lack of income, subpar credit, etc.) would it make sense to move forward with two instead of three cosigners, or should I require that the student find a different cosigner? 

Great job 809 credit score. 12 hits on criminal record the worst being battery with intent to cause physical harm (3 counts total) and Burglary of a Dwelling.

The best option is to refinance in the name of the LLC, but to do that your LLC needs a credit rating (impossible without a DUNS), and appropriate closing costs and reserves.You can't just transfer mortgaged property into an LLC because it then let's the individual off the hook in the event the property needs to be foreclosed.

We would like to start investing soon but we are working on building our credit and paying down debt first.

Great question Patrick.I was driving for $$ in my market and noticed owner neglect (high grass, damaged masonry, etc.). 

7.If you like the property, are you willing to fill out an application for a credit, criminal, and eviction history report?