As others said, you can fill in the blanks easily if you wish to move forward...but at least you can get an idea of what's going on with the property....

.- Buyers earn a reduced yield but hold a valuable option.Much in the same way that equity yields are reduced in up markets when bought with put options.How often do you buy/sell debt with put options?

I live in Phx,az and recently friend of mine sold his bank (ex bank of america) literally as is and profiteed $300k  , he purchased it right out cash last year (I think) and it was in real bad shape in a shady part of town,  before him taking possession of the bank  homeless people where living inside it an using the bathroom anywhere in the building, he put maybe less than $5k in just cleaning it up and just a couple of days sold it.Basically the idea is to find super cheap homes in ****** conditions but the price is so cheap that you could still make profit by selling as is, investing as little as possible..

Option 1: I was thinking she gets her $650k, she holds the note on a 40 or 50 yr amort loan.

I share this not to discourage you from embarking on this project with you as a manager, but I flip homes and have seen for myself the incredible savings in time and money that can be activated when you have the right person overseeing the project and who has the relationships with the subs that can make sure to push them and hold them accountable.

My goal is to build a portfolio to hold and maintain for the long-term.

Assuming the repairs come of their current asking price and are ~$40,000, I did a quick underwriting and come up with a 5.7% levered IRR at a 10 year hold period and 6.5% interest rate. 

Here are a few ideas to help you grow your network beyond your existing circle of friends and colleagues: Real Estate Investment Clubs, and MeetupsOnline Platforms and ForumsSocial Media OutreachLocal Real Estate ProfessionalsNetworking with Professionals Outside Real EstateReferral Programs.

If you can afford it, do it and just hold long term.

The idea of going through the whole real estate process again is not something we truly want to do.