If it is with HUD, did they foreclose or is HUD servicing the loan? 

@Steve Powers is correct that these were mostly originated as owner occupied loans.

Is there a pre existing loan with that bank with either of you?

More doors the better if you are using an FHA type of loan.

So why work, why stress herself out, take on student debt, hours away from family doing that 9-5 all to achieve about $80kyr.

Build - rent - refinance -repeat. in columbus ohio you are buying old houses that are 1900 or 1920 or 1940 and you are in a sellers market. on the other hand you can source land which is a buyers market and build single family homes or duplex or triplexes that will return by renting and pulling cash out on a DSCR loan and doing it again. there aren't a lot of strategies that do this. flipping is different. so many risks. but when someone has a well oiled machine it's all good and less risk.

Also, did you have any other loans (ie student loans, primary residence mortgage, etc) when you took on the $25k? 

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

Please, no solicitations.Use the renovation/acquisition loan products that require 10% down on the purchase and you should be able to get a few going at a time.

In our student houses we use a programmable thermostat, but our building monitoring system has its own sensors and can override the wall thermostat and will not allow the temperature to get below 10C (50F) ... we are presently testing a new software load that will also prevent them from cooling the house too far in the summer.