Buy the home in an LLC with a hard money lender for 2.6 million with a 900k rehab credit written on both sides of the settlement statement.

I hope you still plan to screen her properly, credit check, and check with her previous landlords, (not the last one).

Not necessarily a bad thing to get your message out there, but you never know who you are getting.Definitely be leary. 

Then he quit his day job and started investing full time.How bad do you want to change your life?

. ;-) It's simpler to have an attorney hold onto things and is a powerful witness in a lawsuit. that I get  we did that with our alonges to our notes on our HML  credit facilities we turned over our notes and the alonge to the bank and they kept those docs in their vault. 

The seller credit sounds reasonably--I wouldn't let it hold up the deal if you really want the home. 

Do you have savings to handle if you get a bad tenant?

I'll never know if they were lying or just uninformed of their credit but I believe they were trying to get one over me which is why I pass but I wish them well. 

I've also seen entire lines of improvements encroaching in a daisy chain because a marker on the ground was mis-identified.Lastly, while I may be giving your loan underwriter too much credit, is it possible the underwriting objection is the existing loan on the neighbor's property? 

I agree with Alecia that house hacking is generally the best way to get started, so for the moment I recommend working to get your credit score as high as possible and saving up for a 5% down payment.