It's a thought of mine as well, basically following my mentors model. 

Strategy is long term hold.Question - Apart from getting inspections done by a quality inspections company, what other items do I need to verify or consider as part of due diligence, before closing or in order to decide Go-No-Go?

Always account for the costs of upcoming capital expenditure items in your purchase price.

It's hard to say if a 60k house is worth 40k or 80k, that's within the margin of error based on how much do you consider condition in your valuation.The % based agent commission model does not make any sense below 100k.

I know a lot of builders up there, but not very experienced with the flipping model.

Is that not a repeatable business model? 

You're essentially buying into a partnership with your friend with the partnership owning and operating the property.Now, the financial side of that gets more complicated and would generally include an advanced proforma/financial model that includes a GP/LP equity waterfall schedule that is based on how you and your friend agree that you will pay her and also share the profits.I assume that won't make sense to you right now, but I'll send you a DM.

Always account for the costs of upcoming capital expenditure items in your purchase price.

.: BRRRR have some items that flips do not (plus most of the flip items):- refi appraisals in my market are conservative.  

I am working to build out some models for each but I don't have a clear idea of the route forward for construction or long term financing.