If not, ride out the 12 months with the hard money lender.People have to make good choices and not over extend themselves just for the sake of buying something they really can't afford or that doesn't make good cash flow.

So without knowing the listing history, I would say to try to ride it out a month or two more.

I'm riding the fence on going through the appeal at this point. 

Combined that can cost $50k+ which they may not want to pay nor their is the possibility they would not they pass the DD report.Nothing wrong with raising money in this fashion (FB or online ads), many do it and are great sponsors. 

If you enter at this point, be prepared to ride this wave.

If the borrower themselves need weeks / months to get plans and permits for construction, and does not provide all docs in a timely fashion, we can only go as fast as the borrower provides what we need. 2.

A good ol fashion phone call or house visit would probably solve your problem. 

Of course the tenant doesn't want to pay, she's got a free ride.

Each potential buyer has come to their own conclusion that it would be too much hassle and risk to manage in this fashion vs a traditional rental even though the average cap rate in our area has been half that at best.

I've worked with tenants in a similar fashion and ended up feeling ok about it but it was short term, over the course of a few months and they paid me something the entire time.