Starting with a smaller property or a few fix-and-flip projects can help you build equity, gain credibility with lenders, and better understand the process before scaling up.Securing funding for larger projects can be challenging without prior experience, but options like hard money loans might be worth exploring.

With the limited info, I would say #1 is your smartest option but there are a lot of variables missing.

Is the option government supplied insurance where taxes supplement the insurance?  

Personal loans are typically shorter term maybe up to 5 years.

I would focus on improving your credit and obtaining a more stable income so that conventional financing is an option. 

Typically, the initial upfront for the rehab is either cash or a high interest loan (hard money or private). 

Here are a few suggestions to help with the process:Use Zillow or a Similar Platform: If you already have a Zillow listing, having them apply through there is a good option.

These are not great investments and while the experience is not typical for Memphis, nothing I've read or seen should lead you to believe your experience will improve.  

If the former, give her options to make sure rent is paid on time and, assuming she starts to pay on time, when it comes time to renew the lease, do not renew it.

The time, effort and amount you will save is typically inconsequential.