A much simpler way is to simply buy the house then quickly resell it.

Perhaps they simply ran out of money to complete the rehab?

NEVER again.. simply not worth the risk.. 

Consequently, a lot of borrowers hearing about this going on accessed their lines of credit to get their “Cash/ Equity” out before it was frozen and simply moved it to a bank or other account just in case.The note won’t be called due necessarily, unless you were in breach like not paying, but would still have the same terms in place.  

Otherwise, simply compare rates, points, term, etc, and make a decision.

And then, since I'm the contractor, bookkeeper, tax lady, and homeschool mom, I'm thinking it sounds simpler and worth the extra costs to simply let the guy stay there as a buddy, and pay him through an employee leasing service, do no rental income (or bookkeeping, or Schedule C), and just run it as a regular flip.  

The second time I got no response, but she retaliated by accusing me of calling PG&E, and attempting to access her personal account.

Also what worked better for you, a set fixed price for utilities every month, or simply splitting the bill (ex: half and half) when it came?

Then Cash-out refi as much as possible of what you put into the property, and roll that over into something else, or payback where ever you got the money.That is simply one idea, and it can be done in a number of ways.  

And any amount you purchase over the amount of your sale adds depreciable basis to your property and does create more depreciation allowance.Your situation isn't hopeless but it's probably going to have to be multi faceted and one where you have to compromise a little.Unless you simply do a cash out refinance and let the property support the new debt.