While I’m working on the improvements, how can I protect our investment from theft of appliances or materials?

A purchase and sale contract usually mentions and act of god paragraph and if something has  (materially changed) with the property the buyer can cancel.

Landlord shall have a lien on any improvements, materials and personal property within the Premises to the extent permitted by law for amounts owed by Tenant following any Default.

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Here is some good reading material for you regarding "disqualified parties".https://www.irs.gov/irm/part7/irm_07-027-020.htmlYou will also need to become very familiar with "prohibited transactions" as well:https://www.irs.gov/irm/part4/irm_04-072-011.html

I suspect the answer is no, because I don't see the crowdfunding sites promoting it...but I couldn't think of a reason why not.Is there a reason why a crowdfunding site could not serve as a Qualified Intermediate?

Advised her she would have to pay for the damages..labor and materials.

I would love to learn more about the laws, What kind of materials would be the cheapest on a low budget.

If the deal never materializes you would have wasted your buyers time.Also historically, what has been the best experience for any of you in regards to finding leads/deals?

I asked to please check every means possible since we want this property and it was promoted as a single family home.