Your post reinforces many of my posts about being CAREFUL dealing with unlicensed brokers.

That's good it reinforces my conceptions. 

Definitely have her read Rich Dad Poor Dad then follow it up with playing the Cashflow game with her to reinforce the idea in a risk free way.  

(No structural changes)Repair rear deck and front porch to usable condition and paint apr. 250 sq ft total (remove & replace 4, 2x6x8 deck boards)Floor repair where needed near back door (attach 3 2x10x8 floor joist to existing floor joist to reinforce soft floor) install new subfloor in area of repair.Drywall repair for bathroom, closet, laundry and master bedroom areas where needed (up to 200 sq ft with knockdown texture)Skim coat areas of house with dated wood grain style texture and re-texture where needed (approximately 1200 sq ft) Install bathroom vanity, sink, hardware etc. (36" vanity)Install kitchen cabinets (8 base, 6 wall)Install appliances (dishwasher, microhood combo, electric range, fridge)Install new plugs and switches entire house (14 switches, 4 GFCI, 36 grounded tamper proof plug ins)Install all light fixtures interior and exterior (15 total)Install counter top for kitchen (white quartz slab / granite or tile 32 sq ft "never formica for our flips")Paint interior walls and ceiling one color and trim one colorInstall interior doors (pre-hung 6 panel @ 10 doors)Install interior trim base, window and door trim (approximately 1200 L/F)Install windows where broken @ 2 (24x24 bathroom window, 36x60 bedroom window)Install all flooring, carpet (500 sq ft) laminate (1,000 sq ft) sheet vinyl (100 sq ft).

If that is your business model, then it reinforces the bad reputation unlicensed brokers have.Fair enough? 

Co-signer also signs a co-signer's addendum that reinforces their responsibility, legal action to be taken will be against them, eviction, credit reporting etc, etc.Co-signer gets fully screened. 

Just to reinforce what John already said, flip income is not capital gain income, but rather, ordinary business income,  There is nothing magical about 120 days.  

I have it intentionally front-loaded so that the homebuyer gets a lot of positive reinforcement early for little but important steps forward, and towards the end each one is a larger (and way more important) step.

Just to reinforce, always charge market rent, not what a formula indicates you should or could charge.  

You reinforced why this is such a great site.