I got a picture of her drivers license but am now doubting that was even real.

New dates on letters delivered to the door, certified mail, etc. 

If she has a US drivers license get a picture of that.

Anything less than those drivers is a distraction.

Depends on your market, that should be the driver for everything.  

The investor is technically in the driver’s seat.

They would pay you more for the property if delivered vacant

There is a delicate balance somewhere between keeping legislation strong enough to protect homeowners, while also not burdening the industry so much that people choose to do work illegally as you suggested, or take unnecessary time to deliver a finished project (and thus a home for somebody in this case).

Example of a deal I did last year: Purchase $110k, Rehab $30k, drive rents to $14003.

Well, not really.  But I have been before.  Now that I have your attention, I want to talk about your and my liability as property owners and what we can do to limit it.  
The first order of business when you acquire...