You also need to account for the eviction process, state laws etc...

A variety of things could have caused this.That said, what you've described above is not so untypical in terms of the steps of the process for a fix and flip loan.  

I think if you can nail that down you will be able to find a market easier.As a buy and hold investor some of the things that were important to me when deciding on a market were landlord tenant laws, price to rent ratio, housing demand, ability to build a team, large population 500K plus, multi-family availability and some other factors.take the process step by step and you will be fine. 

One of the biggest issues is probably borrower default—whether due to mismanagement, market downturns, or unforeseen circumstances, lenders can end up in long, costly recovery processes.

Streamline your communication process to secure quality tenants.Focus on QualityThe condition of your property matters more now than ever.

,While no investment is completely passive, proper real estate investing should be relatively boring.You asked about the process and major considerations.

Any advice, tips, or scripts for making the initial contact and navigating this process would be greatly appreciated!

For instance - I am looking to see if anyone has experience with installing recessed lighting into a horse hair plaster ceiling and if anyone could offer advice on the process I should take when doing so? 

If your firend wants to stay in the place AND has the funds/income to do so, they need to refinance in their name ASAP (as part of the process), not 5 yeas from now, not if they remarry, not 10years from now.   

Im doing it more for the love of learning the process and to make a side income.