Also, banks typically use a valuation process that does not favor the BRRRR strategy. 

And I provide solid returns for my private lenders in the process.

Then repeat the process..

Am I missing anything significant in this thought process? 

@Noah Laker Your client should sell the property under her sole ownership without adding the ex-partner to the title, as this could trigger gift tax implications and complicate the process.

I would review your process with how these investments are going so far and figure out what's working and what's not.

You'll find much greater difference in $$$$$ by refining your location/rehab/vacancy strategies instead of worrying about "how much it costs to borrow money" in this environment.Nearly all of my clients are more concerned with a simple and headache-free funding process, than the "lowest rate."

I won't just write them all here but I highly recommend contacting a qualified 1031 intermediary to walk you through the process.

As far as whether to approach them with or without an agent - approaching them directly without an agent can save the seller probably 2.5-3% of fees, which give you some room to negotiate on the price, but you need to be confident that you are capable of evaluating the property value, estimating on the amount of work that is needed, knowing how to negotiate/ structure the deal, and navigating the closing process.

You can always leave and repeat the process and rent out your old living area.