@Luis Vaca Contractor is the hardest part of the equation for sure.

Consequently, I really have a tough time equating cost with value (good or bad).     

Unless you have cash sitting around, you will need to borrow the $180k to build the house, those are cash costs, which will equate to debt payments.  

$250K, 6.875%, 25 years.So...when going out for new REI financing, how does that note play into the equation?

The more you accept unpredictable variables into your risk equations, the more careless your risks become.I'm not dissuading any of the creative methods of financing. 

Alright, it looks like I can get into that neighborhood for 85k as a home buyer.So quick flip equation:85k ARV * .7 = 5950059500 - 5000 (repairs) = 54500 purchase priceThis place looks like you are going to need to be in the mid 50s to flip it or buy and hold it.If this were my place, knowing what I know, I'd rent it.

The viability of the "how" always depends on the variables in the equation.  

Here’s why:Let’s say you find a 220k property in a good area at a 7% cap rate which equates to $15,400.00 in ROI.

She may just be trying to put it aside and not talk/deal with it b/c of the stress but at the same time wants relief and out of the situation.If you could get everyone involved to cooperate then you could probably solve this equation with their help.

I'm also guessing that you are financing with government subsidized loans (GSE loans from Fannie Mae, FHA, Freddie Mac) and that changes the equation.