It sounds like a good case for a fix and flip loan (assuming you will not reside there).

I completely agree with everything said above. 

If neither of you have ever done a flip or a lipstick flip (this does not sound like a clean it out, repaint property at all), the costs will be 2-3x as much as you think and it will take 2-3x as long.

To find out whether home hacking is feasible, do a complete analysis of the local real estate market, taking into account trends, rental costs, and property values.

That sounds like a very bad idea.

Tax liens and mortgage note investing might sound fancy and exciting, but they're not exactly the best choices for a newbie investor like yourself.

From your list it sounds like your research is starting to come together into action items.

It sounds like you need more cash, or you need to look into property in the market you live so you can self manage. 

Then, if you sell the second property without doing another exchange, you would owe the tax on both properties at that time.You can actually manage to avoid the tax completely.

Mid last year He wanted out of the deal completely for personal reason.