You've got good energy but a lot to learn! 

Well, it can be hard to establish the actual dollar amount of damages in many instances, so there is the concept of "liquidated damages" - a holding deposit is nothing more than a form of liquidated damages.

Should we stick the complex in his already established LLC or make a new one?

The neighbors property that is adjacent was bought as a separate lot to his own, so I am going to check if there are any easements on it for the septic to this house (long shot but who knows).

Probably a 1031 exchange is the only answer that would make sense and those have to be ready to go (I believe established within 45 days and closed within six months of the receipt of proceeds of your sale).Further proof that nothing is casually done anymore.

Using private money tacks established track record and personal connections mostly.

Depending on if I choose to rent or flip the house, the rehab could go up or down, but it is in an established & quiet neighborhood with great access to shopping, Costco, restaurants, the Air Force base.

Check out the nearby members and network https://www.biggerpockets.com/meet, it will help you a lot to find partners that can help you out in investing.

As far as Zoning goes i'm not really sure since she is subdividing the lot to put it up for sale.

I'd like to pick the brilliant and experienced minds of fellow REI's as to how to establish a solid lead generation system.