If you want the property to be appraised according to its ability to produce income, they might decide to use their regular criteria for income-producing properties. 

Us taking over will solve her financial situation as well as give her the ability to start fresh. 

Will it hurt my ability to obtain financing significantly?

We never planned on flipping, but it's difficult to ignore the opportunity, especially since it would be just about all tax free cash.Anyway, the other option is a equity loan to buy some investment property, which I may try, but we are purchasing some commercial property for our business and I think this large comm property loan will drastically affect our debt/income ratio and our ability to take an equity loan on our house.

(hence your ability as a landlord to depreciate these things on your taxes).Yes, ACV policies are less and you can weigh your equity v. principal owed v. age of the house materials to determine if an ACV policy will pay off the lender's interest in the event of a large or total loss but this may leave you with little or nothing.

The most important to me was the ability to network with other agents.

(or to the best of your ability to judge).  

I'm not trying to be a downer by asking this, but as someone wanting to jump into the game, I have some big concerns regarding buying now and the ability of GTA (and outlying) properties to produce cash flow. 

I am only going by what he has told me, but houses in his neighborhood are selling for around $134 per sqft and he has his house listed on the market for about $100 sqft. w/ no nibbles at all.My coworker almost failed an exam a couple of days ago and he confided in me that he is stressed about being unable to sell his house and it is effecting his ability to concentrate during exam time.I don't know if this is the right place, but are there any NC flippers out there willing to take a peak at my coworkers house?

The main thing I'd be worried about is hampering my ability to rent the duplex without a garage space if both garages are leased and a duplex unit is turning over.