If she goes the route of canceling I would hold lender liable for the EMD (I assume this was waived) and also hold them to crediting the appraisal fee too. 

Outdated interior but nothing seems too bad.

Asking residents to confirm they had no prior evictions, met income requirements, and had the minimum credit score didn’t ensure they were going to tell us the truth, but it did at least allow the honest ones to opt themselves out.

Make sure everyone is at least 20% members but that will create the umbrella necessary to get everyone “credit” on paper and allow them to start their investment journey. 

Don't forget the investment world is littered with bad products that are pushed through clever marketing (I don't know if those you mention are part of that).

I am an active investor and part of our service is providing guidance to our clients, helping to identify good deals and redflags for bad deals, we can help with deal analysis, and with recommending vendors and contractors as well.

Credit score is about 740. - I’d like to start off with a brr and get some experience with contractors before going into flipping.

Quote from @Jacob Sherman: You'd probably be looking at somewhere around $150 a sqft Not bad.

Personal savings, credit cards.

I was turned down for a HELOC with a different lender (a local credit union who would've given me more credit, but determined my current debt-to-income is too high, especially since the rental property isn't generating rent at the moment).I know that I can do a cash-out refi on the rental property in a couple months.