You need to find a local expert and a local real estate attorney and CPA to help you set your plan in motion.

No point in going through the motions only to find some tenants don’t want another  person there.

If she's well below market a 50$ increase would not trigger a move to an even more expensive property unless she is a person who operates very heavily out of principal.If the rents are lets say, 200 below market and her income is solid I would motion to increase the rents 50 no problem, and plan to increase another 50 on the next lease if it's still under market. 

However, should a government agency consider your methods may be fraud, right or wrong, win or lose, you will spend a lot of money fighting the charges.In Colorado, once a contract to buy real estate is executed, many things are put into motions.

There is a way I heard to do it but it involves putting up 1.5x the amount of damages named in the lis pendens motion in order to get title insurance ,but I am not sure if its viable.

They would likely have standing to seek appointment of a successor POA/guardian if there are no other interested persons who can file a motion to have one appointed. 

I'm sure there are a ton of other things you're considering today, that weren't even a thought when you put this plan in motion.

I would lean towards agreeing with Colleen McCann however, as your first potential deal I would go through all the motions to figure it out. 1.) go to the BP calculators and get an idea of what the numbers would be based on your “estimates” then see if you can get a contractor or two to walk through it with you and get their estimate and see if you are close or way off then go from there. 2.) if it’s a deal you can make work, go for it, if the numbers don’t make sense try again with the same thought process.

We will again be using the VA loan.I think you have a solid plan, and I just have 2 pieces of advice to give.1) Try not to think too much about step 2, until you have step 1 in motion.

Not a bad income when all you need to do is file a motion once every few months or so.I had one guy, I did a short sale on two of his properties for him, ask me if he really needed his attorney he had been paying $500/mo for each property for over a year.