Then, I'm not sure if I want to go the safer route and save for another rental (from the income of my full-time job and the 1st rental) or finance the 2nd rental (and have two rentals and my income pay it off).

Yet it seems like the “thing to do” is to leave the job market and become a full time investor.With it getting harder and harder to find deals in real estate, and with the margins getting smaller and smaller in general, will investors who have left the 9-5 to persue their dreams of investing in real estate full time be forced back into seeking a job to pay the bills?

Offer 2 is full price with 4% closing and a $550 home warranty.

The original idea was I didn’t expect a bank to lend her the 40k for repairs so I assumed she’d be using a hard money lender and I was just assuming at 10 yrs for the loan will full intention of having the property appraised after repairs, remortgaged through a conventional for 30 years at like 3-5% and paying off the hard money loan.

If fixing the house is more expensive than just demoing and redoing it.THat is the simple answer.However you also need to take into account that even if redoing it is (slightly ) more expensive than just fixing said sheetrock... know that a full gut, will result you in a brand new house interior... something that fixing and patching will never even come close to.

Or does it need a full rehab to be re-rentable?

I just joined my friend in his business, pursuing our passions around investment real estate (read: I got my license and am doing this full time now!).

Score is looking good and need full funding for investment.

Full kitchen, and entertainment space layout reconfiguration, all 2 and 1.5 bathrooms including a master bath, and some other projects such as new windows, flooring, tiling, and some other finishes. 

Is your goal to add a stream of income or replace a full time 9-5 gig, to save a certain amount of money, retire early, etc.