Instead I was advised to have the property deeded back to me to avoid a foreclosure ordeal. 

“What if the seller backs out?”

In FL PS only provides about 37% of the leads/oppertunities going through the county records offices (I have  study I have done comparing the 2 to back this up if you want me to post it/send it) recorder offices Florida and Hilsborough are obviously competitive but if your getting information before everyone else and using it fast in the market where it matters its not so competititve.If your leads are for say absentee owner, tired  landlord then you want the owner to have had the property for longer to hopefully increase motivation.

For those that qualify for conventional financing its another negotiation tool, for those that do not its a way to get into real estate but many do not understand what it is they are signing up for.Regarding it being good for an owner, again it goes back to the borrower, if I have a borrower with 800 credit and I control cashflow its far different than someone with 540 credit.

That was the right move for us at the time, but let me tell you, boy oh boy does it hurt every time I realize i sold a 3 bed 2.5bath home in dublin schools that I bought for under $200K...its the one that got away and honestly will haunt me forever...or until i go back and get it again...but seriously find a way to keep that thing fo the long term especially with that rate. 

So now if anything goes wrong, you are not at all guaranteed to get your money back - or put another way the bank gets first dibs.  

However, they have a direct contact in the department who can come out sooner once the secondary cleanout starts backing up again.Would appreciate any advice or insight from those who have dealt with a similar situation!

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

Its what I do, but it doesn't seem to be very popular in the forum.Ha at the risk of sounding like I'm 100 years old I don't think live-in rehab is very popular now because young people are more about comfort than we were back in the day.

If you want to keep it, then would you refinance that new build to pay back the HELOC?