Type doesn't matter so she can go into other commercial real estate or residential or fractional passive opportunities. 

With other repairs you can often exceed the value of the property.I usually market these types of properties to foundation company owner/investors as they can do the repairs for a fraction of anyone else.So where the numbers wouldn't work for other investors it works for them.I know one guy that buys these and does about 3 to 4 a year and makes over 100k on each one.The home buyers can't get a loan and most of the investors won't touch them so the bank dumps cheap for cash.I would venture to say your 15k estimate is on the low side.What most likely happens is the renovations costs more and the months it takes to sell the market slides more.

The inspiration: here in the Bay area, weirdo structures are a little more common (see: fractional TIC loans, etc).

It was a fraction of what the "gurus" programs cost, its also supported by and partnered with the local chapter of the National Real Estate Investor's Association. 

It was an easier start for me as a solo investor because I was able to secure some property for a fraction of the price in major markets.  

You can sell mortgage notes to a SDIRA if you assign them in their entirety, but you can't fractionalize the note or use the funds in multiple projects without creating a registered fund.  

I don't want to lose out on the opportunity, so I'm wondering if I would be able to get other investors to buy fractions with me so I can purchase with the smaller amount of cash I have.

You might be able to do what you want with a loan, and some type of fractionalized note, with an option to purchase a unit upon completion, I'm not sure.

BPOs are a fraction of what they once were and REO listings are slim with the majority of the REO Listing going to experienced agents.   

Why I like buying notes is that I'm buying that debt at a fraction of what is owed, but the borrower still owes the full amount.