Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

I'd like to offer her a financial incentive now. 

Search this forum for "LLC asset protection", and you will find dozens of threads.S-corp is a tax election.

Then, when someone goes to get financing for the asset, the house appraises low, and since the lender is forced to lend off the lower of the appraised value and purchase price, their loan amount must drop and the down payment increases. 

I will use it to get another HELOC , pay it off in 5 yrs, then rinse repeat eventually part of funding my retirement income since i am 57 yrs old and had lost most financial security when my spouse divoced me.  

You need to know that you can take care of your financial situation and really talk out what you think is a great financial situation before you “jump off the cliff” with people who are where you are wanting to get to.

But what you are saying isn't crazy, "good" CRE mortgage rates, on stabilized assets, are about 3% less than what you are looking at. 

This not only developed my skills but my network and the networking has been and still is my most valuable asset.

Don't focus on cash flow, focus on the asset.

I feel bad when people get sucked into sub-par turn key deals when there are much better options for investing in real estate more passively like investing in syndications or being a financial partner on smaller scale deals with another investor who wants to put in the work but needs the capital (I partner with people like this).