Median house price is a big indicator for me.  

If you have a private lender (HML or private) that can lend on the project, sure, get a letter from them indicating their commitment to the project.  

If that is the case, you could still purchase the property - do not offer more than your analysis indicates it is really worth.  

Here's what I would do ...(1) debit asset acct 'loan draws remaining' $25k; debit bank acct 'checking' $63k; credit liability acct 'Mortgages payable' $88k(2) first draw: debit bank acct 'checking' $8k;  credit asset acct 'loan draws remaining' $8k(3) second draw: debit bank acct 'checking' $17k; credit asset acct 'loan draws remaining' $17kI wouldn't call it income, as you indicated, wouldn't want a loan to show as taxable income. 

What someone "owns" really doesn't indicate their level of wealth because some people have just a couple properties that are 100% paid for and someone else may have 20 that are highly leveraged.

Your statement regarding rent increase indicates you are not a experienced investor.

Financial HealthUnderstand the financial health of the borrower – do you have any indicators that show the deal going bad?

This would indicate to me that you bought it with the intent primarily to resell and then your intent changed to holding for productive use.  

They may be professional tenants, they are defiantly tending that way, in which case the threats are only the beginning of their plan to stop paying rent but it is difficult to say. 5 appliance issues in two months indicates they may be intentionally causing damage.I can only say what I always do and that is M2M leases are far superior protection for both tenant and landlord than any term lease.

You will also volunteer for real estate analysis work but did not indicate the type of work you want/can do.