That's what the cash runway is for - to cover your living expenses until you start making money. 

She prefers they sell the house right now, as is, and live off their profit.

If your able to move and live in the unit do that.  

Quote from @Brandon Croucier: A DSCR Loan requires the property to be in LIVABLE CONDITION.Does it mean YOU would live in it?

People are looking to live smaller or some are being forced to live smaller, hence the insane growth in apartments and storages.

I live and work in the Atlanta, GA area.

Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

The first year was challenging meaning had a tenant but not saving, it was just making my living expenses cheaper.

At minimum, stage the living room and primary bedroom to give it some warmth.That said, have you thought about cutting bait and putting your money into a market where the numbers actually work?

Hey DenisI have commented a lot about arbitrage in a general sense here, however I believe I am uniquely qualified to answer here as I live and operate about 65 units in this specific market.In 2016 I got my STR start arbitraging a Gulf Front mansion that was in foreclosure and I got a great deal on.