More of a short-term solution if you're looking to do a value-add or bridge into longer term financing on the multi within 6-12 months.

I think it is the best of the bunch.In the end there are no great solutions in this category.  

If FNMA, FNMA allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met:https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1041300841/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer-09-09-2020.htm

I believe that any losses you have in the stock market could offset rental income.On the other hand, the better solution is to not have any net rental income. 

She could have chosen a much cheaper solution, like go to a coffee shop.

Quote from @Michael Patton: I have a solution for that.

Thank you for this very clear solution, Derek.  

I have it currently on Furnished Finders, Turbo tenant, and ale Solutions. 

So, the solution to the problem is built into the system.  

So another solution is to save up for another deal with your cashflow + savings, and pull money out when/if the interest rate gets lower?