Medical students or nurses or similar would also be an option.

Property tax ~$2,000/yr.The property is located in an area close to a college/medical school and 2 hospitals so I don't foresee any future problems renting it out. 

Even in Silicon Valley MFHs prices do not appreciate as much as SFHs. 401K is meant for your golden years often used for a major medical bill not covered by your insurance.So you want to jump in at market peak it will not regroup until next housing cycle facing tax consequence now?

Take other professions,  Doctor, Lawyer, General Contractor. 

The credit issue could be due to divorce, medical bills, etc, If you think they will be good tenants, why not just collect the first month rent and security deposit?  

I don't understand why Medicare is concerned with his assets unless he has unpaid medical bills but I didn't ask...is there any way around this???

Fast forward a few weeks later, she states to me that her back has been hurting since then and after seeking advice from her doctor, they suggested she see a specialist.

I have seen the results of many deals that have been purchased by investors that thought that they could throw money at a property, hire a PM and go back to their medical or legal practice and be comfortable in the fact that their money was safe and growing.

I'm actually looking at doing a doctorate at UofA, and was looking at multifamily props in the University area.

A doctor bought it in 2003 and never did anything with it.