I posted a handful on the MLS but mainly just received interest from people who want to owner finance (open to that as well but not many are qualified).How would I reach out to an investor who specializes in this?

@Jacob Zivanovich other than an ego boost, NOTHING GOOD COMES FROM TENANTS KNOWING YOU ARE THE OWNER!

Commercial Lines:  Two types of policies are common:     a. business owners policy     b. package policyDiscuss the commercial policies with your agent to see if there is any advantage to those for your situation. 

We spoke to the property owner and he offered to fund the project.

I have to think you did not read that correctly as there is no such thing as LPI for private loans. there are 12 states that require NMLS registration and State licensing for private money/ hard money loans all the other states license not require for commercial purpose non owner occ loans.

Should she form an LLC with us and have it be the owner of the new property or should we just buy it with our current LLC being the owner and then she just pays her portion and basically partners up with us on this deal? 

However, some of those equity partners would be willing to be taken out as they were the former owners of the properties.I wanted to see if anyone had any insight into how we can go about raising the balance of the required funds.

I co host for other owners in select markets and the poconos is an amazing area for STRs.

You could also look for owner-financing deals that make it easier to obtain a loan.

Are you the sole owner?