It looks like it needs about $10k of work minimum to be in acceptable condition (needs new roof), $30k for full updates, but it's rented out anyway already for $2140/mo for the 3 units.

The previous post (2 before mine) is an example of why you must be careful of who you accept advice from.

Any lender that accepts land contracts/lease options can do that loan.

I had already found a new one (thanks to BP), but had not yet signed a contract, since they wanted a termination agreement severing my ties with the first one before accepting me as a client.  

You are not a licensed servicer so you can not manage, accept or work with a borrower's payments to the mortgagee.  

@Chris GatesI have found having a license is quite beneficial, but since you're not a broker you will want to confirm that whomever sponsors you is understanding and accepting of your desire to be an investor.

If she is interested in disposing of the property and she accepts my offer am I still in danger of a contest?

I have saved $30,000 dollars and have no debts accept for $19,500 student loans that I don't have to start paying off until December with a 4.5% interest rate ($220/month).

Because I'm sure in the current market and my location that the banks won't accept the price at 70%-repair price.

If he/she can't accept you wholesaling, and you're committed to it, then perhaps you might want to consider switching to a broker which is OK w/ it.