I agree though, an individual condo unit purchase in an old building without the ability to do or understand your due diligence adequately is a massive risk.

By presenting a competitive offer and demonstrating confidence in our ability to complete the project, we were able to close the deal successfully.

Without the ability to put down a deposit which rarely exceeds 5% of the purchase price how do you plan on completing the purchase? 

I would think that with an eviction or even the start of an eviction process that would severely negatively impact her ability to get a new lease.

Your points about passive investors, risk and ability to "create" value are right on point.  

I am definitely not confident in owner's abilities to determine proper pricing.

The bigger concern would be your ability to refinance and make sure the property appraises for a value that allows you to refinance. that would be the risk, and if you cannot refinance, the balloon expires, the lender could foreclose on the property  

That mortgage will tie up your credit and your VA entitlement, impacting your ability to purchase other property.

Also I shopped very frugal, I would buy a lot of material wholesale or through auctions, and also I had the ability to buy from a former employer, a manufactured housing factory, that was also a huge savings for me.I had to do this deal this way.

If you position yourself on the outer edge of that moving path of progress, there could be opportunities for STR/MTR/LTR all in the same neighborhood, which gives you that desired strong pivot-ability.