That's what they approved for her to live in your unit based on 1) their determination of the market rent for your unit for similar properties of your bedroom size 2) the affordability of the rent plus utilities of your unit based on her income and 2) the max benefit for the bedroom size of herb voucher for your market.

If the house is old and you haven't done repairs, chances are its just the spackle drying up, someone did a crappy job at sanding it. 

landromats are huge tacky turnoff to neighborhoods.. unless well kept and dry cleaner operated included.

(We had a slab foundation but I would imagine pier and beam with wood subfloors and floors would dry just like the framing will).

Be sure your house is completely dry via moisture readings all around before you treat for mold and hang sheet rock.I would also advise you to hire a profession to spray for mold and get a certificate.  

The HELOC gives you lots of flexibility without rushing you into a deal (every second your money sits in the bank, you're losing ROI).I have a $110k HELOC that I keep in reserve for when my liquid cash runs dry.  

If you can't find a buyer you might be leaving the seller out to dry.  

Also, I would highly recommend installing a washer and drying into the units.

If financing dries up how will a beginner get in ?

Appliances are abused, screens and screen doors torn and broken, yards dried up and weed-ridden, washer and dryers killed, dishwashers missing jet thingies, etc.