Most likely this could creep up to 5 years for the full lifecycle. 

She is exposing you to risk just as she would be if she breeding fight dogs or making meth.

We have some $ saved  but don’t have enough to put a full 20% deposit down as needed by most conventional lenders.

Also covid was in full swing which caused all kinds of craziness in the real estate market.

While that may sometime be true, full disclosure to all parties should eliminate any ethical or moral concerns (imo).  

Currently, I am looking at Hemlame for local, I tried to use them for an out-of-state investment property, but the cost with an agent would end up far greater than a full-service property manager.The dream option would combine all accounting, bill pay, rent collection, provide eviction services, and maintenance coordination outside of normal hours.

I have gotten a seller's credit for my 3 existing units but to be conservative, I will assume I am paying full closing costs here.At the moment, I have ~$25k in a HYSA and expect to save another $10k from my W-2 before I start putting offers in.

If it’s the latter, then you’re going to need to devote an immense amount of time and energy to becoming a full time agent.

The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

We don't have kids (might in the future), my husband and I are young and healthy, have stable high-income full-time jobs, and just put in a lot of work to both properties so don't expect huge expenses in the near future.