Deliver the rental premises to a tenant in compliance with the rental agreement, and in a safe, clean, and habitable condition2.

My bet is that both have to go.

If granny loses money you can bet you're getting some phone calls, regardless of the terms you devised you can end up in court very quickly. 

I too do SFR rental properties in SoCal ... most BP'ers assume that those will not be profitable in this market, but that has not been my experience, and I'd bet not your family's experience either :) Happy to network and exchange notes on REI anytime ...

Your best best bet is spending time trying to create relationships.

I bet of this list I have about 30 actual usable addresses tops, and of those there will probably be no motivated sellers, and I saw literally none that were 10+ unit buildings.

@Colton Goodrich - if you are not working with an agent, realtor.com is your best bet.  

In my opinion, if you think you've got just a screaming deal it might be worth it to send in an LOI and make the $4-500 bet and get an appraisal done on your own.

I'm in the process of purchasing my next foreclosure and the bank called to inform me that they have to stop working on my loan because the appraisal came back stating the property did not meet C4 conditions and mentioned the place was in habitable due to poor floor covering(stained rugs loose tiles), holes in walls, urine smells and broken window panes.

(That's probably your best bet to beat the GC quoted price.)From what I have heard, the HD listed subs are on the very high end price range, at least in this area.