I discovered 1 vacancy from appraisal report pictures (earlier inspection report showed clear signs of occupancy) and the other on final walk-thru the week of closing.  

A scope of work provided with an application is clearly an estimate as you can't see behind the walls/ know to the dollar what things will cost etc. 2) do all HMLs require inspections and appraisals (therefore you must keep these contingencies and make your offer less attractive vs cash buyers)?

Sorry that I wasn't clear. 

A clear operating agreement will also need to be structured for the LLC and since I read the goal being that the relative is not to sign on the loan, they need to be kept at less than a 20% partner. 

I just moved to using Cozy (automatic charges ACH for late fees) and will actually be decreasing my deposit to 75% of the rent so it's clear when they have not paid their rent and cannot just simply substitute the deposit for rent.   

RLTO is not clear since it grants right of access to a landlord but not sure whether we can let contractors in.

You'll want to ensure you keep title clear and not mess up anything in the transfer which is why I asked if a deed of trust was officially recorded in the County so you will want to have a paper trail, even though the property will still be collateral for the loan.

After getting my licenses as a Nurse my pay is stable and i should easily clear 55k this year based on the hours and pay i am currently being payed at my hospital job. 

I don't know if this answer is going to provide a lot of value you to you, but one thing that is super important is for an investor to be super clear around what expectations are and what they are looking for.

Clearly the seller / agent is someone who know how to prepare a sales brochure but needs to double check their math.Hope this helps.