If the property is not safe enough for a buyer then it isn't safe enough for a renter either.IMO your ethical choices are to sell as-is (at a discount, probably to another investor) or pull together more funding and complete the renovation.

After proper notification (demand letter) and reasonable time to pay, if she doesn't, you have two choices:1.

Really though it is about relationships too so when you narrow it down you might connect with people in your top choices and see where you feel like you will make the best business relationships.

I can calculate an after repaired value based on the final/new rents - but i am wondering how likely it is for an investor to come along and purchase the investment property (now that it is a stable/safer investment choice).My goal is to generate cash for a subsequent investment, so im sure selling/10-31 exchanging may be best, but i dont know if its a good bet per se.

I like the bold choice in colors; the mural is a nice touch, too.

It is very washable though, so it is a good choice for rentals. 

If the drywall work isn't as good as it could be, flat might be a better choice.

Should I do anything differently, or is that a sound choice?

As I understand it FHA would allow you to use 100% of rents if filed on schedule E, otherwise you can use 75% of rents on lease/s.Do yourself a favor and stop talking to the banks, but rather call licensed mortgage loans originators/brokers in your area and have them walk you through the process and your options, I think you will be encouraged.Finally, I think that your decision to house hack a 4 unit will be one of the smartest choices you have ever made and if you buy right you should be able to live for free or almost free and help you create financial freedomBest of luck!

I believe that would be the best tens of hours that you can spend on the subject.Once you have that done, you should be able to dig into some specific subjects by looking at other sources that have some different opinion to make your choice.