I have chosen to focus on the buy and hold strategy as I tend to think that it is a secure low risk way to build wealth over time and something I think I would be comfortable with.

But you are making a gamble on neighborhoods if you want any chance of cash flow. 

Your the best judge.. within 5 days she'll either be gone or within 6 days you'll file on the upcoming Monday.. loss of processing for basically a week is what your asking..and court costs.. if you can avoid that and she acutally leaves.. your ahead a lot of timePersonally my gamble would be to meet her Sunday set the appointment up and get the keys. 

This jeopardizes the potential flip and is an awful gamble.

With that said, the criteria chosen can and will differ based on location.

I mostly purchased properties that had an opportunity for forced appreciation (one exception and it was priced a little below market at a time that I had no time for a rehab and desired a near zero effort property).So if RE is your chosen path then run it like a business. 

In order to make the aforementioned possible, we have chosen to go with remove the formal dining room since they are so passé these days and enlarge the kitchen and incorporate it into the family room.

You may as well start a full scale BD if this is your chosen business model.  

I have been questioning the plan myself, as it seems like a gamble hoping the ARV is appraised to my liking (or my numbers' liking).

However even in that regard a more qualified applicant, based on the landlords criteria, will still always be chosen first.