Then you can rent it, Rehab and sell it or sell it as is.There are inherent risks involved but if you do the proper due diligence and use professionals (legal team and licensed services) you can mitigate a good amount of risk.

In my opinion, the most important point that Scott makes about building financial runway is that by living frugally and saving so aggressively within such a short time frame, you develop the mindset and habits required to accumulate wealth AND mitigate risk. 

This puts my lender at risk of letting go of funds 5 weeks before they can secure the deed so it's currently a "no go" unless we can find a way to mitigate their risk.     

You might mitigate that loss by offering landlords more than they would normally get in rent.

But if not, you have a duty to mitigate loss.

Then the Seller will have to fill out a short sale packet with the loss mitigation department of PNC.

Seller financing would mitigate the capital gains by spreading it out, but as @Dave Foster mentioned depreciation recapture would be due in the year of sale plus he'd still pay all the capital gains tax it'd just be over several years instead of all at once.A 1031 would make sense if he wants to stay in the game, even though there are several options that would make it pretty hands off for him.

We got the water shut off, home warranty company called, plumbers deployed, and water mitigation company put to work.

We go through a tenant screening process when the tenants first apply to try to mitigate any problems.

Now there may be some mitigating factors that could push some of those percentages I listed down a bit (or maybe there's a chance to increase the gross revenue by increasing rents), but overall this deal looks marginal at best to me.