Borrowing can keep cash on hand for any emergencies or unforeseen rehab costs.

You mentioned it's in good shape - just needs cosmetic repairs - so you shouldn't have to worry about any expensive, unforeseen repairs.

Even with a perfect plan unforeseen things happen.

They would be risking going out of business for unforeseen events that are impossible to track.

If your mortgage rep doesn't know that then they're not very good/experienced, worse they advised 6 months which is both wrong and based on no guideline of any sort.To be clear here, the advice about it being ok to move is due solely to the unforeseen job relocation.

If the home owner's name does not match the policy holder's name, the insurance company will not pay out should the unforeseen occur.No, you can't buy insurance in your name because you are currently not living there, unless you plan on lying to the insurance company.

Do you have patience while a fix and flip enters weeks 5-6 due to unforeseen expenses, and waiting 1-2-3 months until it sells - or do you prefer faster moving transactions- like fixing up a rental and marketing and dealing with tenants, or wholesale flips with paydays 1-2-3 weeks away?

What would happen if you lost your job or encountered a major unforeseen expense? 

The cons, typically you will pay both sides of closing costs, you are buying the property as-is so you have no recourse should you later discover unforeseen issues, wholesalers can mislead you with false information, a bad wholesaler will probably conduct a messy and confusing closing transaction and the wholesaler may have mismanaged the sellers expectations in which the blame or frustration could be aimed in your direction since you are the end buyer.Again it all goes back to the wholesaler and how they have managed the process from start to finish. 

I assume she agreed to the lease in a sound mental state and did not request a rent waiver clause for unforeseen medical problems?