She then tells me that she can’t come up with the money for a deposit.

However, that's cheaper than hard money and it got me in the game.

Those numbers would be ok, but do you have money for the downpayment, closing costs, capital expenditures, 15k for reserves?

But I also realized she has tried to get her rent reduced twice before this was even ans issue which makes me feel like it’s a money thing also.

Spend a little extra furnishing budget money on the areas that will be in your first 5 photos - MAKE THEM STAND OUT!

They are fishing.The next door neighbor of one of my houses put my house as a listing and booked it to a couple from out of town for a couple of nights.The perp found out when it was available, didn't book and found a party to give them money "on the side" to "save the fees" and booked it to them without me knowing.

On a short term hard money loan yes. 65% CLTV max 

I can't decide if I want to pursue a lawsuit for them to turn water back on (and possibly lose) or if I want to eat the money for several months and hope there's water below me.

I've dabbled in the new construction space here in Chicago and there is A LOT that goes into it...I'd highly suggest spending some 1:1 time networking with some other investors like @Jennie Berger or @Prashanth Mahakali who are both Chicago developersYou make your money with the land purchase and then systems/processes/volume over time in the development game, but it's not easy and competition is high!

It’s not as hard as you think and if this Amtrak attracts more people to Scranton, not only will they not want to live in an old run down house but they’ll likely have the money to rent or buy something newer.