They sell the place as quickly as possible and take a steep hit.

Although I did just do a quick google search for professional real estate photography and the prices are $100-$200.

She is in Buffalo, and can be there quickly to meet with people.

With this savings growing quickly, where should we keep our savings to get some kind of a return in the meantime while I crunch numbers, read books and absorb as much as I can before making that first decision?

If you have to go 100 feet, that's a quick $10K extra that needs to be added to the cost of doing the conversion. 

You will quickly notice who the major players in the space are.

I have a family member that is trying to sell their house quickly for whatever they can get.

I am ok with commuting up to 30 minutes, so the areas I've been looking has been from the mid Raleigh area (draw a line from NCSU through downtown) all the way down to Clayton, NC.My fear is purchasing a house which doesn't appreciate at all, having trouble selling quickly, or having trouble finding a renter to cover all costs of the house (including a property manager). 

A quick web search looks like Montana is pretty lenient on disclosure forms, but you should check with your local real estate experts to be sure.If a buyer learns of it I would certainly expect them to want a discount or to shy away from the property.

Here is how it can play out in both scenarios (there are more pictures on my website).FlipPurchase price $72,150 (includes closing costs)Rehab $40,353Holding costs $2,184AVR based on appraisal $150,000Closing costs on the sale %10,500 (7% includes realtor fees, concessions, and title fees)Profit = $24,813 (if we sold it at the appraised value relatively quickly.