I know some of the taxes,utilities and some other miscellaneous expenses are incorrect.

Who is doing the design work and making the rehab decisions?

Be sure to use a reputable screening company for background etc.. many actually will auto decision for you!  

Sounds like you have some decisions to make lol.

My suggestion is to get a boiler service guy (probably a smaller company)  out and get an estimate of what it will cost to repair the boiler so she has heat.. you don't need it working like new just want it to heat..Then you can make more decisions...OK My knowledge on boilers is not great but basically you have a oil or gas burner, a pump and pump motor,  piping and zone valves, and pressure gauge.... so, thermostat calls for heat then boiler fires up and tries to heat water .... then temp of water high enough to heat with.... then pump kicks on to circulate water to and from boiler...      

It's funny that you mentioned AAron Vaugn, He contacted yesterday and gave us a lot of reinforcement in our decision to pursue real estate I'm looking forward to meeting his group and learning from some professionals.

Only you can make the decision about what is right for you.

Not sure on every form, but for hud there is an owner occupied only bidding period that typically lasts 10 days, then all other bidders are able to bid, and it's a same day decision process, so they assess bids daily after it's opened up to investors.  

There is just so much that goes into the decision no one will be able to tell you what is best for you and your specific situation other than local counsel.

Good Luck on making your decision on whether or not to keep the security deposit.