You also need to the resources to do the renovation and also qualify for the final loan.Another way would be to buy the MFH first, live in it, renovate one unit, move into the renovated unit, then renovate the other unit(s). 

The attorney requires a final payoff amount to the hard money lender.

My hopes for real estate investing are to eventually (years from now) secure a semi-passive income stream that requires minimal hands on management. 

Back to now, there is still a chance this current tenant might leave, she says she just doesn't know if she can finalize her purchase which makes me nervous because obviously i want to know if she is leaving or staying especially after she made me list the unit and go through all the work of finding a new tenant.

But after a few years of talking to her about it, I have finally convinced her to use the equity in her house to buy more real estate.

@Davit Gharibyan, The QI for your 1031 will have the final word. 

That said, I finally caught a break and have been presented with a unique opportunity and although I'm not overwhelmed yet (excited!)...

Tenant has decided not to show up for final walk through and has stated they will video taped the final walk through. 

Once those plans are approved you can do any necessary work and after the final inspection is approved you can file for a certificate of occupancy.

You should be able to compare your sample settlement statement with the final paperwork.