I’ve personally gutted and rehabbed three of my own houses, and for the last three years, I’ve been hands-on managing my own rental properties.

Buying as a vacation rental could potentially qualify for a lower interest rate, but you’ll likely need to provide proof of personal use (even if minimal).

we can do it not rented but rate will be significantly higher. easier and more cost effective to rent it. unless the bridge money needs to be paid back asap or you need the funds back to buy more, then a cost analysis needs to be done. personally id get it rented at market rent or a touch below if time is a factor. 

Some regional cities that I personally would consider are Savannah, Beaufort, Wilmington, Columbia, Greenville, and Charlotte.

I would build a relationship with the person before you decide to partner.

Interesting, I bet she is a unique person.

RE investing has been something I wanted to do personally.

I think the best thing to do would be to find a good-hearted person with a lot of experience and pick their brain.

Personally never heard of this scheme or way to set up transactions. 

Hard to say one way or another without knowing your personal finances, goals etc., but it seems like a good deal.