What if you told the tenant you would pay them XYZ if you could sell the property before foreclosure?

If your paying cash to buy and rehab then refinancing I get that.. but your still paying for two closing costs.

Must pay well, she door dashes breakfast, lunch, dinner like clockwork.

I would stay away from section 8, pull credit and background, and call referrals, and look at pay stubs for everyone who applies.

I will be managing and will be paying a real estate agent friend to show the properties for me.

How much less will a potential buyer pay for the house, now that one "bedroom" does not have a closet?

They are essentially giving the property to you at fair market price, so someone is going to need to pay taxes on that fair market price.

If you have a buyer's agent, you should have already signed a buyer's representation agreement and that fee/commission is disclosed in that document so you should very well know what that charge will be.If you were the seller and going to owner finance the property, what would you want to see from the buyer that tells you that they will be able to pay the mortgage moving forward. 

Personally I wouldn't feel comfortable trying to wholesale a relatives $1M home knowing that I am breaking the law if I cross over into doing anything that can be considered representing them in the transaction, and knowing it will only be marketed to people who buy properties wholesale (typically investors who don't want to pay retail prices), instead of the majority of retail buyers active in the market who are typcially willing to pay more. 

Then she still only makes 2% extra for taking the risk of you not paying versus a bank.