(I know, you are all already going rookie mistake, hind sight I assure you)  So, now I have someone living in my house and I am about to file bankruptcy (CHP 7) and have no money to pay for an eviction.  

Rest assured I and many others on here have done exactly what you are trying to do. 

Since you’ve never done this before, you might instead talk to some larger local hard money lenders to see if they sell their performing loans or take on investors.A knowledgeable HML will be able to answer your questions, know how to evaluate a flip and the flipper, and ensure legal compliance.

I can virtually assure you there will always be someone with money who wants to lend it out.

Most importantly you need to convey confidence and assurance you are a player and not just wasting their time.

There is a commercial FHA loan, but it would probably not work for this deal because it is usually large purchases and has a lot of compliance.

I can assure you that there are more than a few investors who wish they were in your position. 

I will be looking at what FHA compliances are such as heat/ac unit, roof, and whatever else might help an end buyer obtain financing, plus flooring and paint of course. 

She assured me that as long as the debt is to be paid with the cash-out and that is reflected on the closing documents I will be okay.

We don't make a dime on appraisal orders, the "real" reason we order appraisals is specifically for that "skin in the game" to give us reasonable assurances that we're not wasting our time.