These are more complex that a standard Forward 1031 Exchange. 

In general, it is harder to secure props that flow in these areas because they tend to be better taken care of, leaving less room for a well-done cost-effective rehab to increase value while keeping the all-in price below market.

Seems like a very intriguing way of managing property and benefitting from increase NOI and ultimately property value.I am looking at a 3 family property that needs a ton of work (perhaps $75-100K, although I haven't done a deep dive on pricing yet).

It's compensation and standard of work? 

What I'm wondering is, what are the standard formulas that an experience investor would use when considering a new property. 

My goal is either to lower my interest rate which will help lower my mortgage payment which helps in increasing my monthly profits or pulling equity to make improvements to the rental and invest in other investment properties.

They are telling you that their fiduciary responsibility is to You, which is a higher standard than that given to just a "customer".  

This would increase my monthly cash flow immensely.

You set the expectation with her that she would have an actual yard and you have failed to meet that standard.

A standard purchase and sale agreement will work.