I got approved for 150k through a conventional at 3.5% down and 5% interest. 

My problem is I wouldn't have the reserves to go conventional.

Second is as you are looking at those components you need to know what the materials would cost at Home Depot and if you were to call a contractor what would they charge for labor.

Conventional loans, I want to get the title out of my name. 

So conventional lending is out of the question for the near term.

Yes, our buyer was able to get a conventional loan from a bank.I like @Brian Adzadi’s idea of selling to a flipper or someone who looks at these imperfections as opportunities and is possibly coming to the table with a cash or private money offer.

I did get approved for the mortgage, with a conventional and low down payment.

Putting more down payment is a way you can make the numbers work better but the more you put down the closer you are to conventional financing and thwarting the benefit of low down FHA financing.The SS rule requires that the gross rents of all units even your owner occupied unit X 75% is greater than your monthly PITI (prin/int/tax/ins monthly payment).

I'd absolutely charge her for the key.

But the disregarded and actual reporting of the property plus the added rationale of lender requirement makes a strong argument.But yes an unseasoned or asset stripped LLC that is also disregarded is considered a lending risk and it will be tough to find a conventional lender who will lend to it.