If you do not do so in the stated timeline, you might only have a very small portion of your claim covered.

Is there another creative solution to funding the rebab portion of this REO deal using money we already have in 401k, traditional and Roth IRA?

A lot of people when they talk about house hacking say you should make your offer such that your portion of PITI plus expenses is less than what you would pay to rent a similar unit.

If those fall outside of what is reasonable or required by law than that portion or your whole lease could be seen as invalid.

I'd also research cities that have a relatively low property tax rate since that eats up a major portion of your cash-flow. 

(I asked her what she is hoping for out if this deal and this is what she said)She is looking for: $130,000 because she wants to pay off her current mortgage on the duplex (just under $100,000) and a personal loan that she took out in order to buy her new mobile home that she’s currently living in (about $25,000) as well as roll her portion of closing costs into that $130,000. 

If I can convince my GF, is it possible for her to roll over our portion of the profit as an "investment" into another property my business partner and I will buy with a 1031?

Please can you provide me w/ the section 8 process because you mentioned you get paid a portion of the rent and the other portion the tenants pay?

In my experience, there is a very large portion of the investor pool that wants value add and understands what they are and how to evaluate them. 

That family member was NOT about to liquidate a portion of their portfolio to lend me a cash for a downpayment.