I was able to secure a room for $50 at Sidecar Social for one hour, after which they will allow us to move to an open area/table. 

Ensure you specify exactly where they will be allowed to erect the sign.

A lease allows them eviction, a str license agreement allows you to remove them quickly.i have one if you'd like it 

-Repeated modular homes with the same floorplan also allows for operational simplicity.

I plan to flip the house but to avoid all the fees and closing cost involved with buying the house she has agreed to allow me to rehab then sell and give her our agreed upon price within 90 days of our agreement.

I asssured her I meant nothing of it, I just wanted to make sure I understood the ramifications of having meetings, conversations recorded and allowing her into my apartment to record things.

Just wondering if this is allowable especially if I meet the requirements for short term rental requirement for tax purposes like 100 hours?

The typical 506 structure is an EXEMPTION from the SEC, so there is no set capital requirement for doing so, since it allows you to raise money publicly (depending on the structure) without having a securities license. 

also the company is going to allow me to be a 1099 private contractor. 

This allows you to be all cash in the beginning having more leverage when it comes time to finding a tenant and refinancing.