It is no wonder that flipping is the number one choice for getting started among beginners, but let's not forget that there are a few drawbacks to flipping.

At that price range consider perhaps Palmdale, Palm Springs,  etc...for many practical reasons.  

I practiced law as a biotech IP litigator on downtown Boston before jumping to RE full time.

It's a breeze to lay, in the past, if someone breaks open a box and hands me the piece I can lay about 200sqft per hour.It's practically indestructible for tenants, but it has one achilles heel which is cat piss.

I would screen myself however the selected choice.   

You can use fancy words such as 'using leverage to enhance returns' etc. all day long, but the fact remains: if as a client I loose 50% of my premiums to commissions and fees I don't care what kind of leverage I gain as a result, it would practically be impossible to recover my losses. 

If you're a licensed real estate agent, you have a duty to inform the seller.If you're unlicensed, you should probably ethically tell her, but you've got to make that choice yourself.

She makes around 37k, working part time by choice. 

Numbers are always everything and sometimes you have to a lifestyle choice.

your first choice which is referred to as "house hacking" is a very popular concept alot of investors have started off doing and/or implement today.