Simple solution: Inform them that unfortunately you can’t accept ESA letters without being able to verify the validity of the letter by speaking with the local licensed mental health professional who prescribed them their ESA, so that you can verify that they have a legitimate disability requiring an ESA as well as that whoever prescribed it to them is a real licensed mental health professional who has an ongoing relationship with them beyond just receiving a one-time payment to “prescribe” the ESA. 

Looking at comps (unfortunately there aren't many) I believe I have increased the value about $30k-$40k.

Do not, under any circumstance, count on appreciation to make up for smaller than expected potential profit.

I'd love to get started ASAP, but am low on funds for the short term future unfortunately.

I live in a very rural area in the northeast and most of the markets within an hour of me are primarily class C and D neighborhoods with reputations for drug and crime problems (as well as my own hometown unfortunately) so I will probably look to long-distance investing as I get started.

Unfortunately my work is not scalable and does not allow me to extend such opportunities.

Take a 20% royalty for hosting, unfortunately that means that technically you become her pimp.

Unfortunately there is little conclusive data available here yet.

I have a steady W-2 job (unfortunately for now!)

A multifamily deal is a resilient, recession-proof gold mine because rents tend to increase regardless of economic circumstances, there will always be more people than places to live, PERIOD.