My current situation is, in part, a result of playing it too safe and avoiding risk altogether.

The six month cd isn’t the point my understanding is that I can’t just take out the HELOC, I need to actually use the money for my plan to work and a short term CD seemed safe and reasonable 

If you found a safe way to do lease options in Texas I’m all ears.

Quote from @Zachary Deal: Choose neutral safe tones and get nice materials but don't splurge too much on very fancy cabinets, counters, appliances that someone else may not value the same as you.This is so true.

That is a safe harbor from the IRS with a couple of caveats. 

Be safe out there. 

I usually like to start it shorter to be safe if I need to end the tenancy, but I know some people opt for the longer 14-15 month leases.

Safe rent after rehab is $900 per month, maybe higher if I get lucky and/or rehab it to a very nice condition.  

I believe that is safe to say for most markets in the US regarding either SFH or MF.

It’ll save you headaches later if she tries to escalate things.Document Everything: Take pictures, write down the history of your interactions etcOffer a Transition Plan: Just like my client, I’d recomend offering her a temporary storage option nearby, or even a small rent discount, to show you’re not trying to kick her out - just keeping the property safe and up to code.