The title companies are concerned with minimizing risk and making a fee.

Am interested in foreclosures especially, but ones with minimal turnaround time to occupancy (paint, carpet, maybe patching walls and some appliances).

I am new to this so any information would be greatly appreciated.You are wasting your time trying to talk to the bank.

But since you want to pull the money out ASAP, make sure when you're calling to ask if they have any sort of seasoning requirement so you don't waste your time applying for a loan that they can't even do. 

What would be the best way to go about to minimize fees, payments, taxes on both ends?

This would not be a smart move on your part and may prove to be a waste of time (best case) or worse.Let it be and worry about it after she moves out. 

There are several things that you can do to minimize the possibility of ending up with a bad deal.

Do some minimal upgrades, get the property evaluated for price, refinance, then rent it out & move into your new multi-family.

And from the sounds of it, they rejected it until it was asking price or sometimes even if it was asking price.There's no negotiation in your favor, why waste time?

. , we are all far more concerned with talking to real motivated sellers and not just someone wasting our time.