Refinancing it into a 30 yr loan should lower the payments but It may also depend on the current mortgage rate compared to what her current rate is.

In any case,   one argument FOR holding onto smaller apartment properties in seattle is that townhouse redevelopment,  which requires the same zoning as small multifamily causes a lot of SFR and smaller apartments to be lost to redevelopment,  so this class of neighborhood scale and typically comparatively affordable housing is going to get harder to come by,   and presumably in higher demand as a result.

I'm assuming the house is furnished being a model home and that the builder is "renting" it for purposes of showing the house to prospective buyers in that development.If the above is correct it's possible the buyers could insure the house as a vacant property.I think an attorney should write up something for both parties to sign showing the builder assumes liability while showing the home.

I'm interested in potentially placing some bids on some properties in Mecklenburg County in NC but am unfamiliar with how the due diligence process works compared to a typical property purchase.  

I would compare it to other multifamily properties in the area and not on a price per sqft basis because that tells you nothing especially for multifamily. 

That’s the purpose of title insurance.

Purely an education purpose.

You'll definitely want to have a WV Attorney - due to different Laws WV as compared to Texas. 

Yes if your attorney has some experience with RE contracts, that should be good enough.A Real Estate agent can help with comparative market analysis to help you confirm you are getting a good deal.

What are your thoughts on using cap rate vs. comparable sales?