Suggesting to them buying their house for a wholesale range offer or lower dependent on the extent of the rehab, then having a contract in place that gives them a percentage of the profit to help get them back on their feet, paying off debts etc.

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Any lawsuits should be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced, some debate as to SMLLC).

Once the work was complete, I refinanced to pay off the hard money loan and held the property as a long-term asset.This duplex also marked the start of my short-term rental journey—we ran our first Airbnb from one of the apartments before scaling to bigger projects.

Im thinking about paying the bank the 50lk that we owe and the taxes.

It's simply overwhelmingly nuts. 

The long hours and dedication will pay off as you learn the ropes and prepare for your first investment.

If we can't find a solution, I think she will be OK with me adding her property under my own account, and then me paying her out monthly.

Now, I'm imaging a scenario when every one of these tenants move out that I'll be paying their entire security deposit + interest even if there are damages beyond normal wear and tear. 

You might not cash flow right away, but even just offsetting what you were paying in rent while building equity, getting tax benefits, and learning how to be a landlord is a game changer.

The last one told me I'd likely pay a small fortune for this policy.