Monthly payment $1256total note collection remaining $139,416.

Usually, this would be in the form of a rent roll and contains everything related to your property related to vacancy, rent collected, expenses, fees, etc.

do I now Request for Tenancy Approval (RTA) form so HUD could come inspect the property and starting collecting rent (assuming inspection is passed)?

(Say 60% LTV) Do you have enough reserves to go after the collection of this debt if they stop paying?

And collect income, pay bills etc.  

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

We will lose out on $100k but get our cash out and the new investor will clear $100k by sitting on a deal for a year (while collecting rents).Does this seem feasible or something that would be attractive to an investor?

The question is: Do I let her rent longer, continuing to collect, then renovate before the next renters' cycle (around March/April or later)?

If tenants are moving out right after closing, do double check the leases clearly show the security deposit they paid the seller and you collect that amount at closing from the seller (credit to you) so you have those funds to then return to the tenants when they vacant under your ownership. 

For market pricing, I collect LTR data from BP rent calculator and multiply by 1.5x.