@Heather WatkinsYou'll probably hear a lot of opinions from different people as there's really no right or wrong way to structure your holdings. 

Anyone have an attorney that they could refer me to who’s investor friendly & that understands as well as structure wholesale/assignment of contract deals in Orange County NY area?

QUESTIONS:1- We assume we can structure the Pure Option this way ? 

This could give the ability to have a better and higher appraised value along with selling it separately from the main structure (main SFR or SMF).

From what you say, she doesn't want the hassle any more, so take that knowledge and see if there is a mutually beneficial way to structure this deal. 

This thorough investigation helps identify potential red flags and ensures that the sponsor has the resources and expertise to execute the project successfully.Financial AnalysisExamine the sponsor's financial statements, funding sources, and capital structure to evaluate their financial health and stability.

I also did a video interview with Jacob Rappaport that is about 36 minutes on YouTube that is phenomenal and he talks about the pros and cons of different set ups. it changed the way I structured my rental business and I have watched it several times since doing the interview with him.

While not explicit, the contract is written in such a way to encourage a commission, and discourage an hourly pay structure.   

Your structure is complex and not cost-effective.

For example on SFR primary/second home properties, typically HELOC's are structured as a 30 year amortization, with the first 10 years usually being the 'draw' period (time to utilize and pay down the credit line) interest only and 20 years amortized principle and interest payments.