And, things will be MORE action focused, more experience based, more "in-the-moment" of the market then some "program" someone developed "once upon a time" to sell to the masses. 

My thought is to approach her by saying that my original plan was to purchase the property and convert her unit into Section 8 so that I could get the $3,200/month rent -- but since she's a long term tenant, I would be willing to forego that plan and tell her she can pay $3k/month to stay.What are your thoughts?

I plan to hand write the letter to keep it personable and local.

I moved to Colorado and do not have plans to return to NM Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

There are lenders that have a 5-8 program and some that go up to 10 units.

We plan to DIY and upgrade, and our exit strategy will depend on what rents look like in four years as to whether we hold or BRRR.

If you plan to live in the property, you may have a better (IMO) option of using section 121 to avoid cap gains taxes up to $250k filing as an individual, $500k as a married couple.

Hi Kirk - sounds like a wonderful plan. 

So, my plan is to get a loan or line of credit for the renovation for 18 months and then refinance the entire property when the balloon payment comes due. 

Make sure they have real estate experience as location is not an issue, most of us work remotely assisting RE investors with their tax planning.