Keep it unless it shows signs of water damage/mold/excessive damage. 

Create short blogs about loan programs, selling tips, staging tips, ect and share them constantly.3.)

If I were in your shoes, I'd sell the building and roll the funds into a multifamily asset (5+ units) that cash flows in considerable excess of your mortgage and expenses.

I would say flooring is the #1 killer when it comes to excessive wear-and-tear, neglect, or abuse. 

I’m not sure what else to ask at this stage - I know nothing about this market and am trying to find alternatives to her continuing with these home costs.On a side note: I don’t see how any body affords to live in NJ with the taxes that I see being paid.

You can do a lot of damage towards your long term success in the beginning stages of a fledgling STR business in this market.

2) If I do close on the property would it be a better tax advantage to replace the roofing over the rental section in stages (half 1 year, half the next)?

Changing to a commercial loan at this late stage would likely put you in violation of your contract.

I hope that since the rest is just cosmetic it will go a bit faster  (i.e. install laminate floors, tile, painting, install new kitchen cabinets, landscaping, and staging).   

I’m still in the learning and research stage, but I’m very interested in real estate investing and I’m looking to make local connections.