Great advice on next steps.  

They are not calculating, but also very deceptive that now when I look back, the whole three days training is a step by step scripted the process of selling, every single second of it.- I went to a top college and have a very stable career with great income.

The BRRRR method and house flipping are both fantastic strategies, especially if you're resourceful and willing to put in the work.If you’re working with limited capital, partnering with others or exploring creative financing options like private money lenders or seller financing might be worth considering.

Can you take the steps you suggest?

There best move would be to put the property in a trust and not sell it until after the current homeowner passes away as that may allow the daughter to get a step up and then sell.Also, seller financing does not always net the highest price - and there is the issue of the seller having now to hope a loan does not go into default. 

As long as you paid a contractor or someone who’s not an employee $600 or more in a tax year, you are required to issue them a Form 1099, regardless of whether you paid them via cash, check, or another method.

In working on construction loan financing, the lender informed me I'll need to unencumber that portion of the property (makes sense) before closing on the construction loan.I understand there to be two methods generally speaking: refinancing my mortgage and removing that portion of the property in the process OR attaining a partial release from the lender to remove that land.I *strongly* want to avoid refinancing as I have an amazing rate, but partial releases seem complex and also require a survey.

Not sure what your local state, county, and municipality laws are, but the first step is to see if you're even allowed to reject based upon the applicants voucher.  

You need to set a deadline for them to correct the issue, then follow up with an inspection or other method to confirm compliance.

.: Quote from @Marc Bowman: A lot of our software users in the Gatlinburg area have reported that the Fire Marshall is stepping up and enforcing things that perhaps they didn't in the past.