You need to sell the idea to her again. 

I was living in and renting the house and asked the landlord if he was interested in selling it to me and he was.

I have a new build project that I am in the middle of building with the intent to sell once finished.

Let's say you get your 5% appreciation and sell after 1 year.

He knows that area well and that would be my first stop .Secondly there were some pretty bad actors selling US props to Aussies back in 2011 to about 2016 when the exchange rate was so favorable to Aussie dollar.. but so man Aussies got totally ripped off paying 2X 3X 5X over the actual values of the properties.. 

Also, consider why the seller would be selling.

So I found a for sell by owner property that is a mobile home that has been converted into a two unit duplex (units have been furnished by owner).

And potentially a kicker / extra payment when you sell or refinance if the property outperforms certain metrics. 

Still trying to sell my vacant land.

Deprecation recapture should only happen (in general) when you sell.