Contracts were sent out and I was about to sign but I found out on my own (it was never stated in the listing) that this house is mandated by the town to be raised and my offer did not take that cost into consideration.

Don't sign anything until you have a lawyer review it first.

I haven't seen anyone who would do non-recourse for this type of transaction. 

Any financed transaction will be subject to an appraisal. 

I know my bandit signs get calls but I doubt if tenant buyers for this property would call a bandit sign.

You can use a 1031 exchange to defer taxes, but you also face pressure to locate and close on another transaction.

A split to 80/20 could be problematic because it doesn't reflect the Joint nature of the tax return and could be seen as a step transaction if she was to only do an exchange on her 80%.Owning as Joint tenants is certainly a possibility and in fact the one that matches the tax return. 

signed contract for 125k 30days for closing .....

My name is Geoffrey and I just signed up as BP Pro members couple weeks ago because I really want to know more about real estate investing.

On a Non-QM loan, you can finance the property in the name of the LLC but must sign a personal guarantee.