I would only use the heloc if you plan on cashout refinancing one of the properties to pay it off once the rehab is complete. 

Do they pay within 5 days of the first of the month (in some states that is not late)? 

And with brokerages now offering new agent programs where they will pay 100% of the expense to get licensed, there is literally no reason not to. 

Typically who pays the for the utilities?

I would suggest taking the route of option 2 or 3, so not only are you saving over 10k in rent per year but the residents help in paying down the debt.

You may be required to make estimated tax payments when the property sells.It depends on what your 2024 total taxes due were and 2025 estimated total taxes / withholding / estimated payments are.If you pay in atleast 90% of the current year tax or 100% / 110%(Depending on 2024 income), you are normally considered good.You may want to consult with an accountant for more clarification.

Nor would I pay retail for a property with that low proforma return even though I like PR.  

If you do it all above board, you would pay taxes on the rental income received and your daughter would be using post-tax dollars to pay rent which isn't the most efficient.

If worse comes to worse and I need to get a judgement against the tenant and co-signer(s) can I force them to pay?!?

As much as I'd love to rehab the properties to boost the ARV (which was the initial goal), funds are tight right now to do that so as-is is the way for me to go.Absolutely.