I really don’t want to ask my perspective tenant (also, an essential worker with good income) to rehome his dog and I am wondering if he signs a “Hold Harmless” agreement for any bite issues if that would hold up in my favor?

Laws are far more favorable in your situation. 

Would it be more in my favor to work with someone who is cloud based or in person?

Would it be more in my favor to work with someone who is cloud based or in person?

Maybe it is not favorable since the mortgage payments might be high.  

I honestly don't know anything about hard money loans or other types, but I know that if the interest rate is as high as 5.4% this will work in your favor.

(Generally this can take 45 - 60 days to find, requires more documentation, but offers more favorable rates and terms).

I'm not sure how this works out, but it made me think that seller financing may work in his favor and mine.

First, if you are doing her a favor, you dont need to be driving there. 

When rehab is completed and the property more likely to obtain favorable bank financing, the IRA could convert some of the initial loan to equity and then the IRA and partner could seek a bank loan, but it would have to be non-recourse with respect to the IRA.Some banks will do a loan with a personal guarantee from only one of two partners, but that is not common.I suggest you and your partner engage an attorney to craft a way to work together.