I’m going to talk to them today about the complaints that I am getting, but if this pursues, what exactly are my options in this situation? 

Are you well capitalized and able to go 6+ months without making a dollar?

As you indicated you have plenty of options to start.

Looks like you have some good options in front of you @Martin Phinney.

If you are going to offer cash for keys, put it in writing with specific expectations, and include a penalty if she fails.

After listening to hours of the different BP podcasts, I decided to just go ahead and join so I can have more community for guidance and learning and moving towards my first deal.

@Chandler Koch Welcome to BP!

Mail would go to the office or another location. 

So it does appear to be possible to get an FHA 203k loan for a 5-unit & convert to a 4-unit.When possible, aim for the Limited (aka Streamline) 203k loan, as it's less complex, not required to get an FHA consultant, etc.Of course, this is based of the two following important assumptions:1)  zoning allows for this2)  and obviously I owner occupy for at least 12 months3)  the total purchase price + renovations are within the FHA loan limits specific to my areaWhat I'm confused about is the timeline or chronological order of the process? 

Welcome to BiggerPockets, Michael!