I also found the Homestyle® loan which is very similar. from what I understand, the homestyle® loan gives a bit more flexibility of the renovation, requires slightly higher down payment (at 5% down, this still makes for a much more affordable first buy), and allows you to end your PMI after 22% equity, which seems very attractive to me. 

You have 3 main options assuming you want to keep growing.1.

The main question I ask is how long this growth can continue?

Like Michael said; is the area’s economy diversified or does it henge on one main employer.

@Jorge Pena the main reason to sell is because a lot of bad stuff can happen with rehabs of this size.  

If a huge chunk of that is going to taxes it is much less attractive and I'd absolutely rather just rent it out.

It’s not attractive.

This was my primary attraction to having my license.

Here are my main questions:-Should I be getting an inspection report and/or an appraisal from her?

There are some smaller "dying" towns around the country that are offering attractive incentives to young professionals (and maybe even retirees) who choose to relocate.